Company Omega bought new office furniture in the year 2010. The purchase cost was 84,745 dollars and in addition it had to spend 15,722 dollars for installation. The furniture has been in use since April 3rd, 2010. Zeta forecasted that in 2025 the office furniture would have a net salvage value of $1000. Using the US Accelerated Depreciation Schedule, estimate the value of depreciation recorded in the accounting books in the year 2014 if the company decided to sell the furniture on June 24th (of 2014). (note: round your answer to the nearest cent and do not include spaces, currency signs, or commas)

Company Omega bought new office furniture in the year 2010. The purchase cost was 84,745 dollars and in addition it had to spend 15,722 dollars for installation. The furniture has been in use since April 3rd, 2010. Zeta forecasted that in 2025 the office furniture would have a net salvage value of $1000. Using the US Accelerated Depreciation Schedule, estimate the value of depreciation recorded in the accounting books in the year 2014 if the company decided to sell the furniture on June 24th (of 2014). (note: round your answer to the nearest cent and do not include spaces, currency signs, or commas)

Name: Company Omega bought new office furniture in the year 2010. The purch
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Description: Company Omega bought new office furniture in the year 2010. The purchase cost was 84,745 dollars and inaddition it had to spend 15,722 dollars for installation. The furniture has been in use since April 3rd, 2010.Zeta forecasted that in 2025 the off

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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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Company Omega bought new office furniture in the year 2010. The purchase cost was 84,745 dollars and in
addition it had to spend 15,722 dollars for installation. The furniture has been in use since April 3rd, 2010.
Zeta forecasted that in 2025 the office furniture would have a net salvage value of $1000. Using the US
Accelerated Depreciation Schedule, estimate the value of depreciation recorded in the accounting books in
the year 2014 if the company decided to sell the furniture on June 24th (of 2014). (note: round your answer to
the nearest cent and do not include spaces, currency signs, or commas)

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