29- A machine costing RO 1760 has an estimated life of 4 years and a residual value of RO 350. Find the depreciation for the second year using Sum of the Years-Digits method. a. 987 RO b. 423 RO

Q: None

A: (a)Annual depreciation rate = (1 / Useful life) x 2 Annual depreciation rate = (1 / 5) x 2 Annual…

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A: Depreciable base=Cost-Residual value=RO 7200-RO 540=RO 6660

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A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

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Q: Am. 203.

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A:

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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.