Chapter 6 concerns the accounting and presentation of property, plant and equipment and other noncurrent assets. Property, plant and equipment are depreciable assets which means the amounts paid for these assets must be written down or depreciated over the useful life of the asset. There are many methods for depreciating assets but three widely used methods are addressed in this chapter. The methods are 1) straight-line depreciation; 2) declining balance depreciation (specifically double declining balance); and 3) units-of-production or units-of-activity or activity based depreciation. Below is a video explaining each method. Your assignment is in your own words describe each method and then compare the different depreciation methods and its affect on net operating income. Your posting should be a minimum of 200 words.

YouTube URL: http://www.youtube.com/watch?v=hty3yfgcSLQ