A vehicle was purchased for Rs. 30,000 its life was estimated as twelve years and the scrap value as Rs. 6,000. (a) Using the reducing balances method, calculate the depreciation rate (%). (b) Estimate the depreciation fund at the end of three years.

Q: An asset costing $20,000 has estimated useful life of 5 years and salvage value of $4,500. Calculate…

A: >Accounting principle states that the cost of the long term assets (like equipment) is to be…

Q: The MACRS depreciation allowances on 3-year property are 33.33%, 44.45%, 14.81%, and 7.41%,…

A: Depreciation  A method of allocation of net cost with respect to those periods in which an entity is…

Q: A machine costs P 8,000 which last for 7 years with a salvage value at the end of its life of P 355.…

A: Depreciation is the decrease in the value of the asset due to wear and tear over the useful life of…

Q: The purchase of an item of construction equipment is fifty thousand Kenya shillings(kshs) . The…

A: Depreciation is the amount of reduction in the value of asset due to its normal usage in the…

Q: Consider the following data on an asset:Cost of the asset. I                              $…

A: (a)

Q: value of P30, 000 at the end of the per iod. Compute the depreciati nd its book value after 10 years…

A: We can also find the declining depreciation by declining rate which is founded in below table and it…

Q: Use full-year depreciation for the adjusting entries

A: Journal refers to the process of recording all the monetary transactions which shows all the credit…

Q: 1. A telephone company purchased a microwave radio equipment for 6MPhp. Freight and installation…

A: Given: Telephone Radio Equipment = 6M = Php 6,000,000 Freight = 3% * 6000,000 = Php 180,000 Salvage…

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A: Depreciation is the reasonable method to allocate the asset cost to its useful life.

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A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…

Q: 6) Use linear interpolation to find the indicated value. A vehicle purchased for $ 33,000…

A: Interpolation is a type of estimation of finding new data points based on given range of data…

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A: Revaluation Surplus = Fair value - Carrying Amount   Depreciation Expense = Cost - Residual…

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A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

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A: Step 1:The calculation for the payback period is given below: -Payback Period=Last Year With…

Q: If the current value of a chemical plant is $ 800 thousand, its scrap value is $ 50 thousand, the…

A: Since you have posted question with multiple sub parts, we will solve first 3 sub parts for you. To…

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A: Depreciation may be defined as the decrease in the value of assets due to continuous use and passage…

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A: Depreciation Expenses -Depreciation Expense is charged on the fixed assets of the company. This…

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A: Initial Cost = P 1,000,000 Salvage value = P100,000. Time Period = 10 Years

Q: A machine costs Php 300,000 with a salvage value of Php 50,000 at the end of its life of 10 years.…

A: Machine cost (C) = Php 300000 Salvage value (S) = Php 50000 n = 10 years r = 6%

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A:

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A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

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A: Here's the depreciation schedule for five years:YearBeginning book valuedepreciation expense (20% of…

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A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

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A: Depreciation is the decrease in value of assets over the period but the rate of depreciation is…

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A:

Q: depreciation charge and its book value after 10 years using straight-line method

A: Annual depreciation = (Cost of the fixed asset - Salvage value)/Useful life

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A: This Numerical has covered the concept of Depreciation Accounting. There are many methods of…

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A: Depreciation is the amount of reduction in the cost of assets due to use of assets in the activities…

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.