12 15 13 14 3345 2023 2024 9 10 11 Required: 6 Year 2025 7 8 4 5 6 Lallyn Corp runs a river cruise in Croatia. They purchased a cruising boat on January 2, 2023 for cash of $56,500. Its estimated useful life was 5 years or 50,000 hours with a residual value of $5,000. The company's year end is December 31. 2023 2024 2025 Straight Line Method Actual Hours were: 11,600 14,800 9,000 Units of Production Rate Units of Production Method Double Diminishing Rate Double Diminishing Balance Carrying Amount (at end of the year) Depreciation Expense Purchase Price

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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.