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Although textbooks often assume assets are purchased at the beginning of the fiscal year this assumption is flawed – businesses do not run out at the beginning of a fiscal year and buy all their assets then! Instead, they purchase assets when they are required, at any time during the year. This videos explains how partial year depreciation can be calculated. There are other ways but this is one of the most common, called pro-rating of depreciation. Course Length: 8:38 minutes Source: Else Grech Accounting

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