2. Suppose an item of asset acquired on 5th Jan at the cost of P 50000 has estimated use of 20000 hours. During the first year, the said equipment used was 4000 hours. The estimated salvage value is 4000. Calculate the depreciation expense during the year.

2. Suppose an item of asset acquired on 5th Jan at the cost of P 50000 has estimated use of 20000 hours. During the first year, the said equipment used was 4000 hours. The estimated salvage value is 4000. Calculate the depreciation expense during the year.

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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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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