calculate the 5th year depreciation charge using a fixed percentage method of an asset costing P1,000 having a life expectancy of 5 years and an estimated salvage value of P400.

Q: Consider an asset with a cost basis of $10,000 that has been depreciated using 100% bonus…

A: The bonus deduction allows deducting 100% of the cost in the first year instead of different years…

Q: The MACRS depreciation allowances on 3-year property are 33.33%, 44.45%, 14.81%, and 7.41%,…

A: Depreciation  A method of allocation of net cost with respect to those periods in which an entity is…

Q: An asset with a purchase price of $486,966 falls in the 5-year MACRS asset class. The asset will be…

A: The book value is calculated as the cumulative depreciation over 3 years multiplied by asset cost

Q: Compute the depreciation for the forecast 3 years for an asset pf 10700 costs the asset life 10…

A: The depreciation expense is the reduction in the value of a fixed asset with the passage of time.

Q: What is the depreciation deduction each year, using each of the methods below, for an asset that…

A: Depreciation is the reduction in the value of assets due to normal wear and tear, passage of time,…

Q: You are to create a year-by-year depreciation schedule for an asset that has a cost basis (B) of…

A: The salvage Value is $80,000 The price of the Equipment is $950,000 Project life is 10 years To…

Q: An asset costs $19,000. At a depreciation rate of 20 percent, calculate its book value using…

A: Depreciation is considered as an expense that is charged on the value of the Asset. It can be…

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.