A machine shop purchased a P45000 of equipment. What is the yearly straight line depreciation straight expense for the equipment if it has a life time of 10 yrs. and has a salvage value of P5000? a. 6000/yr b.4000/yr c.7000/yr d.5000/yr

A machine shop purchased a P45000 of equipment. What is the yearly straight line depreciation straight expense for the equipment if it has a life time of 10 yrs. and has a salvage value of P5000? a. 6000/yr b.4000/yr c.7000/yr d.5000/yr

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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Question

A machine shop purchased a P45000 of equipment. What is the yearly straight line depreciation straight expense for the equipment if it has a life time of 10 yrs. and has a salvage value of P5000?

a. 6000/yr

b.4000/yr

c.7000/yr

d.5000/yr

A machine shop purchased a P45000 of equipment. What is the yearly straight line depreciation straight expense for the equipment if it has a life time of 10 yrs. and
has a salvage value of P5000?
O 6000/yr
O P4000/yr
O P7000/yr
O P5000/yr

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

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