5 On January 1, 2017, Cake Corporation purchased for P150,000, equipment having a useful life of ten years and an estimated salvage value of P8,000. Bennett has recorded monthly depreciation of the equipment on the straight-line method. On December 31, 2023, the equipment was sold for P28,000. As a result of this sale, Cake should recognize a gain (loss) of If f you answer is loss, here is the format (PXXX,XXX). Example (P123,456) *

5 On January 1, 2017, Cake Corporation purchased for P150,000, equipment having a useful life of ten years and an estimated salvage value of P8,000. Bennett has recorded monthly depreciation of the equipment on the straight-line method. On December 31, 2023, the equipment was sold for P28,000. As a result of this sale, Cake should recognize a gain (loss) of If f you answer is loss, here is the format (PXXX,XXX). Example (P123,456) *

Name: 5On January 1, 2017, Cake Corporation purchased for P150,000, equipme
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Description: 5On January 1, 2017, Cake Corporation purchased for P150,000, equipment having a useful lifeof ten years and an estimated salvage value of P8,000. Bennett has recorded monthlydepreciation of the equipment on the straight-line method. On December 31,

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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5
On January 1, 2017, Cake Corporation purchased for P150,000, equipment having a useful life
of ten years and an estimated salvage value of P8,000. Bennett has recorded monthly
depreciation of the equipment on the straight-line method. On December 31, 2023, the
equipment was sold for P28,000. As a result of this sale, Cake should recognize a gain (loss) of
If you answer is loss, here is the format (PXXX,XXX). Example (P123,456) *

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