Buna Co owns a non-current asset which cost $55,000 on the 1January 20X5. It had a useful life of 20 years and a residual value of $5,000. It is the company’s policy to depreciate assets using the straight line method. On 1 January 20X8, Buna Co estimated that the remaining useful life of the asset was now only 14 years with an expected residual value of $2,000. What is the depreciation charge for the year ending 31 December 20X8?
Buna Co owns a non-current asset which cost $55,000 on the 1January 20X5. It had a useful life of 20 years and a residual value of $5,000. It is the company’s policy to depreciate assets using the straight line method. On 1 January 20X8, Buna Co estimated that the remaining useful life of the asset was now only 14 years with an expected residual value of $2,000. What is the depreciation charge for the year ending 31 December 20X8?
Buna Co owns a non-current asset which cost $55,000 on the 1January 20X5. It had a useful life of 20 years and a residual value of $5,000. It is the company’s policy to depreciate assets using the straight line method. On 1 January 20X8, Buna Co estimated that the remaining useful life of the asset was now only 14 years with an expected residual value of $2,000. What is the depreciation charge for the year ending 31 December 20X8?
Buna Co owns a non-current asset which cost $55,000 on the 1January 20X5. It had a useful life of 20 years and a residual value of $5,000. It is the company’s policy to depreciate assets using the straight line method.
On 1 January 20X8, Buna Co estimated that the remaining useful life of the asset was now only 14 years with an expected residual value of $2,000.
What is the depreciation charge for the year ending 31 December 20X8?
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
