A laser machine costing 380,000 pesos has a useful life of 30,000 hours at the end of which its salvage value is 45,000 pesos. In the first year it was used for 2,190 hours, in the 2nd year, 3,170 hours. Find the 2nd year depreciation cost.
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.
NEED HELP ASAP! THANK YOU!
A laser machine costing 380,000 pesos has a useful life of 30,000 hours at the end of which its salvage value is 45,000 pesos. In the first year it was used for 2,190 hours, in the 2nd year, 3,170 hours. Find the 2nd year
Step by step
Solved in 2 steps
