|
| 1 | +""" |
| 2 | +In accounting, depreciation refers to the decreases in the value |
| 3 | +of a fixed asset during the asset's useful life. |
| 4 | +When an organization purchases a fixed asset, |
| 5 | +the purchase expenditure is not recognized as an expense immediately. |
| 6 | +Instead, the decreases in the asset's value are recognized as expenses |
| 7 | +over the years during which the asset is used. |
| 8 | +
|
| 9 | +The following methods are widely used |
| 10 | +for depreciation calculation in accounting: |
| 11 | +- Straight-line method |
| 12 | +- Diminishing balance method |
| 13 | +- Units-of-production method |
| 14 | +
|
| 15 | +The straight-line method is the simplest and most widely used. |
| 16 | +This method calculates depreciation by spreading the cost evenly |
| 17 | +over the asset's useful life. |
| 18 | +
|
| 19 | +The following formula shows how to calculate the yearly depreciation expense: |
| 20 | +
|
| 21 | +- annual depreciation expense = |
| 22 | + (purchase cost of asset - residual value) / useful life of asset(years) |
| 23 | +
|
| 24 | +Further information on: |
| 25 | +https://en.wikipedia.org/wiki/Depreciation |
| 26 | +
|
| 27 | +The function, straight_line_depreciation, returns a list of |
| 28 | +the depreciation expenses over the given period. |
| 29 | +""" |
| 30 | + |
| 31 | + |
| 32 | +def straight_line_depreciation( |
| 33 | + useful_years: int, |
| 34 | + purchase_value: float, |
| 35 | + residual_value: float = 0.0, |
| 36 | +) -> list[float]: |
| 37 | + """ |
| 38 | + Calculate the depreciation expenses over the given period |
| 39 | + :param useful_years: Number of years the asset will be used |
| 40 | + :param purchase_value: Purchase expenditure for the asset |
| 41 | + :param residual_value: Residual value of the asset at the end of its useful life |
| 42 | + :return: A list of annual depreciation expenses over the asset's useful life |
| 43 | + >>> straight_line_depreciation(10, 1100.0, 100.0) |
| 44 | + [100.0, 100.0, 100.0, 100.0, 100.0, 100.0, 100.0, 100.0, 100.0, 100.0] |
| 45 | + >>> straight_line_depreciation(6, 1250.0, 50.0) |
| 46 | + [200.0, 200.0, 200.0, 200.0, 200.0, 200.0] |
| 47 | + >>> straight_line_depreciation(4, 1001.0) |
| 48 | + [250.25, 250.25, 250.25, 250.25] |
| 49 | + >>> straight_line_depreciation(11, 380.0, 50.0) |
| 50 | + [30.0, 30.0, 30.0, 30.0, 30.0, 30.0, 30.0, 30.0, 30.0, 30.0, 30.0] |
| 51 | + >>> straight_line_depreciation(1, 4985, 100) |
| 52 | + [4885.0] |
| 53 | + """ |
| 54 | + |
| 55 | + if not isinstance(useful_years, int): |
| 56 | + raise TypeError("Useful years must be an integer") |
| 57 | + |
| 58 | + if useful_years < 1: |
| 59 | + raise ValueError("Useful years cannot be less than 1") |
| 60 | + |
| 61 | + if not isinstance(purchase_value, (float, int)): |
| 62 | + raise TypeError("Purchase value must be numeric") |
| 63 | + |
| 64 | + if not isinstance(residual_value, (float, int)): |
| 65 | + raise TypeError("Residual value must be numeric") |
| 66 | + |
| 67 | + if purchase_value < 0.0: |
| 68 | + raise ValueError("Purchase value cannot be less than zero") |
| 69 | + |
| 70 | + if purchase_value < residual_value: |
| 71 | + raise ValueError("Purchase value cannot be less than residual value") |
| 72 | + |
| 73 | + # Calculate annual depreciation expense |
| 74 | + depreciable_cost = purchase_value - residual_value |
| 75 | + annual_depreciation_expense = depreciable_cost / useful_years |
| 76 | + |
| 77 | + # List of annual depreciation expenses |
| 78 | + list_of_depreciation_expenses = [] |
| 79 | + accumulated_depreciation_expense = 0.0 |
| 80 | + for period in range(useful_years): |
| 81 | + if period != useful_years - 1: |
| 82 | + accumulated_depreciation_expense += annual_depreciation_expense |
| 83 | + list_of_depreciation_expenses.append(annual_depreciation_expense) |
| 84 | + else: |
| 85 | + depreciation_expense_in_end_year = ( |
| 86 | + depreciable_cost - accumulated_depreciation_expense |
| 87 | + ) |
| 88 | + list_of_depreciation_expenses.append(depreciation_expense_in_end_year) |
| 89 | + |
| 90 | + return list_of_depreciation_expenses |
| 91 | + |
| 92 | + |
| 93 | +if __name__ == "__main__": |
| 94 | + user_input_useful_years = int(input("Please Enter Useful Years:\n > ")) |
| 95 | + user_input_purchase_value = float(input("Please Enter Purchase Value:\n > ")) |
| 96 | + user_input_residual_value = float(input("Please Enter Residual Value:\n > ")) |
| 97 | + print( |
| 98 | + straight_line_depreciation( |
| 99 | + user_input_useful_years, |
| 100 | + user_input_purchase_value, |
| 101 | + user_input_residual_value, |
| 102 | + ) |
| 103 | + ) |
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