Bold and Grusome bought a motor van for $45 000 and estimated its scrap value at $3 000 and it's useful life as 5 years. Depreciation is charged on the straight line method. i What was the depreciation rate per year? 11. What amount of depreciation should be charged in year 3? IL What was the net book value at the end of year 4? Iv. What was accumulated depreciation at the end of year 3? V Name ONE other method of depreciation. Add file
Bold and Grusome bought a motor van for $45 000 and estimated its scrap value at $3 000 and it's useful life as 5 years. Depreciation is charged on the straight line method. i What was the depreciation rate per year? 11. What amount of depreciation should be charged in year 3? IL What was the net book value at the end of year 4? Iv. What was accumulated depreciation at the end of year 3? V Name ONE other method of depreciation. Add file
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...
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Concept explainers
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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Transcribed Image Text:Bold and Grusome bought a motor van for $45 000 and estimated its scrap value at
$3 000 and it's useful life as 5 years. Depreciation is charged on the straight line
method.
i What was the depreciation rate per year?
I1. What amount of depreciation should be charged in year 3?
IL What was the net book value at the end of year 4?
Iv. What was accumulated depreciation at the end of year 3?
V. Name ONE other method of depreciation.
Add file
JESTION 5 - Prepare the Appropriation Account of The Sharks Bay
shermen's Cooperative Society.
TDeints
The Sharks Bay Fishermens Cooperative Society has a share capital $150 000 The
Income and Expenditure Account for the year ending March 31 2006 shows a surplis of
$36 200. Lndistributed sirplus brought fonvard from the previous year is S6 000. The
management comnittee decided that the surphis should be shared m the following
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