accumulated depreci transaction? Oa. loss of $11,052 Ob. loss of $10,533 Oc. gain of $10,533 Od. gain of $11,052
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.
The cost of the asset which is spread over the benefits of the estimated useful life of an asset is referred to as depreciation. It is also known as written down the value that is charged against the fixed asset at the end of each accounting period.
Answer is option b
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