A machine costs Php 500,000 with a salvage value of Php 50,000. Its useful life is six years. The expected flow of the machine is 38000 hours in six years. In the first year, the machine was used for 4000 hours. In the second year, 6000 hours and 8000 hours on the third year. What is the depreciation at the end of the third year? What is the corresponding book value?
A machine costs Php 500,000 with a salvage value of Php 50,000. Its useful life is six years. The expected flow of the machine is 38000 hours in six years. In the first year, the machine was used for 4000 hours. In the second year, 6000 hours and 8000 hours on the third year. What is the depreciation at the end of the third year? What is the corresponding book value?
A machine costs Php 500,000 with a salvage value of Php 50,000. Its useful life is six years. The expected flow of the machine is 38000 hours in six years. In the first year, the machine was used for 4000 hours. In the second year, 6000 hours and 8000 hours on the third year. What is the depreciation at the end of the third year? What is the corresponding book value?
A machine costs Php 500,000 with a salvage value of Php 50,000. Its useful life is six years. The expected flow of the machine is 38000 hours in six years. In the first year, the machine was used for 4000 hours. In the second year, 6000 hours and 8000 hours on the third year. What is the depreciation at the end of the third year? What is the corresponding book value?
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
