An asset is purchased for P9,000. Its estimated life is 10 years after which it will be sold for P1,000. Find the book value during the first year if sum of the year's digit (SYD) depreciation is used. Formulas: a) Sum of the years = n(n+1)/2, where n is the useful life b) Depreciation Expense = (Remaining life / Sum of the years digits) x (Cost – Salvage value) c) Book Value for the 1st year = cost –depreciation
An asset is purchased for P9,000. Its estimated life is 10 years after which it will be sold for P1,000. Find the book value during the first year if sum of the year's digit (SYD) depreciation is used. Formulas: a) Sum of the years = n(n+1)/2, where n is the useful life b) Depreciation Expense = (Remaining life / Sum of the years digits) x (Cost – Salvage value) c) Book Value for the 1st year = cost –depreciation
An asset is purchased for P9,000. Its estimated life is 10 years after which it will be sold for P1,000. Find the book value during the first year if sum of the year's digit (SYD) depreciation is used. Formulas: a) Sum of the years = n(n+1)/2, where n is the useful life b) Depreciation Expense = (Remaining life / Sum of the years digits) x (Cost – Salvage value) c) Book Value for the 1st year = cost –depreciation
An asset is purchased for P9,000. Its estimated life is 10 years after which it will be sold for P1,000. Find the book value during the first year if sum of the year's digit (SYD) depreciation is used. Formulas: a) Sum of the years = n(n+1)/2, where n is the useful life b) Depreciation Expense = (Remaining life / Sum of the years digits) x (Cost – Salvage value) c) Book Value for the 1st year = cost –depreciation
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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