Brilliant deduction, sherlock.

Depreciation is tangible.

So we have this depreciation value. This is the truck depreciation.

That's what depreciation does.

Well, you know depreciation, man.

The tax agent allowed the deduction.

Now I have this interest deduction.

Oh, it's great. Convincing. Mathematical deduction.

That's good, that's a good deduction, yeah.

Instead of retooling I'll call that depreciation.

I went and used an automated deduction tool.

So Pex does the same deduction steps as

But in our deduction, none of these matter.

This is the art of deduction applied to debugging.

And that was able to be a tax deduction.

Does depreciation of the yen give rise to inflation?

This is all a review of the depreciation video.

Really, in my mind, it's very similar to depreciation.

So the depreciation in each of these periods is 20,000.

You'll often hear the words depreciation and amortization used together.

If you don't believe an automated deduction tool, you can believe me, and if you don't believe me, you can believe an automated deduction tool.

i like to think that i have some powers of deduction.

And if we did our depreciation schedule right, or if the

So instead of putting 500,000 there, the depreciation is minus 250,000.

And then we have depreciation, and we want to think a little bit in this video, what does the depreciation do to the cash flow statement?

And now for a really tough quiz in which you can show how good your deduction skills are.

If it's 30 , that means a 100 deduction will save you 30.

After this brief diversion, let's get back to the actual deduction process.

I don't think we took any depreciation on that new equipment last year.

It would be minus 12,500 in each year, depreciation expense, and we would account for it on the balance sheet.

If your marginal tax rate is 20 , a 100 deduction will save you 20.

The fact that this machine right here that cost 50,000 is used for in this example, in the depreciation video, it was usable for two years.

So for example, depreciation, this was factory equipment, and it gets old as I use it, so I spread out its cost.

Instead of the scientific method, you can also use deduction to rule out specific possibilities.

If you've watched the video on depreciation and amortization, this might even include the depreciation on some of the physical assets they've bought, or maybe the amortization on the rights to the name Super Pizzeria.

I could not help laughing at the ease with which he explained his process of deduction.

I could not help laughing at the ease with which he explained his process of deduction.

And then the other 250,000 essentially went to an expense called depreciation, which is right there.

Amortization is the exact same thing as depreciation, but it applies to things that aren't equipment.

You add the profit to the depreciation, you get a 50,000 operating profit same as the previous year.

And then instead of having an equipment expense, instead of having that expense, they'll have an equipment depreciation expense.

Now let's practice the art of deduction on this example simply from the observation that this final assertion has failed.

And we're a non profit foundation, you can give us the property and take a hell of a tax deduction.

If no, write down the individual steps of your deduction and let's see whether this is elementary, my dear Watson.

We want to add back this depreciation to the profit so our cash from operations is going to be 50,000.