A printing press that costs $287,300 is depreciated using the 1.5 declining-balance method. The scrap value of the press is estimated to be $7,000 and the press has an expected life of 20 years. Prepare the third year of a depreciation schedule Complete the table. Annual Accumulated Year depreciation depreciation $21,5475 1 $21,547.6 2 $19.931.44 $41,476.94 (Round to the nearest cent as needed) End-of-year book value $265,762.5 $245,821.00
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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