. A machine costs 2,500,000. At the end of its economic life of five years, its salvage value is Php 800,000. Using the Sum of the Years Digit Method of Depreciation, what will be its book value for the first year?Prepare a depreciation Schedule.

. A machine costs 2,500,000. At the end of its economic life of five years, its salvage value is Php 800,000. Using the Sum of the Years Digit Method of Depreciation, what will be its book value for the first year?Prepare a depreciation Schedule.

Name: 4. A machine costs 2,500,000. At the end of its economic life of fivey
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Description: 4. A machine costs 2,500,000. At the end of its economic life of fiveyears, its salvage value is Php 800,000. Using the Sum of the Years Digit Method of Depreciation, what will be its book value for the first year?Prepare a depreciation Schedule.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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4. A machine costs 2,500,000. At the end of its economic life of five years, its salvage value is Php 800,000. Using the Sum of the Years Digit Method of Depreciation, what will be its book value for the first year?Prepare a depreciation Schedule.

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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