28 February 2022. Equipment R20 000 Accumulated Depreciation R16 000. Depreciation is calculated at 20% p. a. on a diminishing method. An old equipment was disposed for R1 500 cash on 1 December 2021. The equipment originally costed R3 000. The Accumulated depreciation for previous years is R 700. The depreciation for the year for the disposed equipment is: OA. R460 OB. R225 O C. R92 OD. R345
28 February 2022. Equipment R20 000 Accumulated Depreciation R16 000. Depreciation is calculated at 20% p. a. on a diminishing method. An old equipment was disposed for R1 500 cash on 1 December 2021. The equipment originally costed R3 000. The Accumulated depreciation for previous years is R 700. The depreciation for the year for the disposed equipment is: OA. R460 OB. R225 O C. R92 OD. R345
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
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Transcribed Image Text:28 February 2022.
Equipment R20 000
Accumulated Depreciation R16 000.
Depreciation is calculated at 20% p. a. on a diminishing method. An old equipment was disposed for R1 500 cash
on 1 December 2021. The equipment originally costed R3 000. The Accumulated depreciation for previous years
is R 700.
The depreciation for the year for the disposed equipment is:
O A. R460
OB. R225
O C. R92
O D. R345
Not y
Mark
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