LO2- . . O Understand WHY long-lived assets are depreciated (cost allocation) What are the estimates required in the calculations of depreciation Be able to calculate depreciation and prepare the JEs under the following methods Straight-line method Units-of-activity method Understand the concept/terms of Original Cost, Depreciation Expense, Accumulated Depreciation, and Net Book Value -be able to calculate each in a given situation NO calculation for Double-declining balance method, but just understand what an accelerated depreciation method is and why it may be selected by a company. Be able to compare depreciation results under the three methods (e.g. which would give you higher depreciation in the early years vs higher in the later years, etc...) Understand how revisions to the estimates involved in calculating depreciation are treated