00:01
So here we have a machine, right? and the machine is worth, right, goes from 65 ,000 to 15 ,000, right? that means there is 50 ,000 to be depreciated, right? you are have a total of, by using this asset, you are going to reduce its value by $50 ,000.
00:26
That's the total amount of useful life in it, right? is $50 ,000.
00:31
And this is equal to 15 ,000 hours, right? so 15 ,000 hours.
00:39
So if we know that 50 ,000 is equal to 15 ,000 hours, and we divide both of these things by three, we get, oh, sorry, it's not 15 ,000, it's 5 ,000.
00:59
Oh, 5 ,000.
01:01
That means there's 60 ,000 to be depreciated...