an you show me how to do this one step by step? 11. DEF, Inc. purchased slot machines at the beginning of 2018 for $20,000. The machines have an estimated residual value of $2,000 and an estimated life of five years or 20,000 hours of operation. A. Using straight line depreciation, calculate the total accumulated depreciation at 12/31/19. B. Using units of production depreciation, calculate depreciation expense for 2018. Assume the machines operate at 5,000 ours in 2018. C. Using double declining balance depreciation, calculate the book value of the machine at 12/31/19.
an you show me how to do this one step by step? 11. DEF, Inc. purchased slot machines at the beginning of 2018 for $20,000. The machines have an estimated residual value of $2,000 and an estimated life of five years or 20,000 hours of operation. A. Using straight line depreciation, calculate the total accumulated depreciation at 12/31/19. B. Using units of production depreciation, calculate depreciation expense for 2018. Assume the machines operate at 5,000 ours in 2018. C. Using double declining balance depreciation, calculate the book value of the machine at 12/31/19.
Chapter1: Financial Statements And Business Decisions
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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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Can you show me how to do this one step by step?
11. DEF, Inc. purchased slot machines at the beginning of 2018 for $20,000. The machines have an estimated residual value of $2,000 and an estimated life of five years or 20,000 hours of operation.
A. Using straight line
B. Using units of production depreciation, calculate depreciation expense for 2018. Assume the machines operate at 5,000 ours in 2018.
C. Using double declining balance depreciation, calculate the book value of the machine at 12/31/19.
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