Company XYZ purchased equipment on November 10, 2021 at a cost of $5,000. The equipment is expected to last 5 years and the the company's year end is December 31, 2021. Answer the following questions: Remember to prorate to the nearest month! Fill in the blanks be sure to not include any commas or decimals unless otherwise stated. For example $1,000.00 should be expressed as 1000. Only include decimals when told. 1. How much depreciation expense should be included in the December 31, 2021 Statement of Income? $ the nearest $1 2. How much depreciation expense should be included in the December 31, 2021 Statement of Income if the equipment was purchased on July 2, 2020? $ rounded to the nearest $0.01 3. How much depreciation expense should be included in the December 31, 2021 Statement of Income if the equipment was purchased rounded to
Company XYZ purchased equipment on November 10, 2021 at a cost of $5,000. The equipment is expected to last 5 years and the the company's year end is December 31, 2021. Answer the following questions: Remember to prorate to the nearest month! Fill in the blanks be sure to not include any commas or decimals unless otherwise stated. For example $1,000.00 should be expressed as 1000. Only include decimals when told. 1. How much depreciation expense should be included in the December 31, 2021 Statement of Income? $ the nearest $1 2. How much depreciation expense should be included in the December 31, 2021 Statement of Income if the equipment was purchased on July 2, 2020? $ rounded to the nearest $0.01 3. How much depreciation expense should be included in the December 31, 2021 Statement of Income if the equipment was purchased rounded to
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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Company XYZ purchased equipment on November 10, 2021 at a cost of $5,000. The equipment is expected to last 5 years and the the
company's year end is December 31, 2021. Answer the following questions: Remember to prorate to the nearest month!
Fill in the blanks be sure to not include any commas or decimals unless otherwise stated. For example $1,000.00 should be expressed as 1000.
Only include decimals when told.
1. How much depreciation expense should be included in the December 31, 2021 Statement of Income? $
the nearest $1
2. How much depreciation expense should be included in the December 31, 2021 Statement of Income if the equipment was purchased
on July 2, 2020? $
rounded to the nearest $0.01
rounded to
3. How much depreciation expense should be included in the December 31, 2021 Statement of Income if the equipment was purchased
on January 2, 2020? $
rounded to the nearest $0.01
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