A tractor costs $23,940, has an expected life of 12 years, and has a salvage value of $2,100. Use straight-line depreciation to find the yearly depreciation. Make a depreciation schedule for the first three years' depreciation. Complete the table. Year Depreciation Accumulated depreciation End-of-year book value 1 $enter your response here $enter your response here $enter your response here 2 $enter your response here $enter your response here $enter your response here 3 $enter your response here $enter your response here $enter your response here
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.
A tractor costs $23,940, has an expected life of 12 years, and has a salvage value of $2,100. Use straight-line
|
Year
|
Depreciation
|
|
End-of-year book value
|
|---|---|---|---|
|
1
|
$enter your response here
|
$enter your response here
|
$enter your response here
|
|
2
|
$enter your response here
|
$enter your response here
|
$enter your response here
|
|
3
|
$enter your response here
|
$enter your response here
|
$enter your response here
|
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
