Computer Purchased for 15000 $, Insurance was paid of 2000$ Estimated useful life is 4 years Residual Value is 4000 $ Deprecion percenatge is 30% per annum Calculate the Depreciation of the computer for 4 years by diminishing method.

Computer Purchased for 15000 $, Insurance was paid of 2000$ Estimated useful life is 4 years Residual Value is 4000 $ Deprecion percenatge is 30% per annum Calculate the Depreciation of the computer for 4 years by diminishing method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Computer Purchased for 15000 $, Insurance was paid of 2000$

Estimated useful life is 4 years

Residual Value is 4000 $

Deprecion percenatge is 30% per annum

Calculate the Depreciation of the computer for 4 years by diminishing method.

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

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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation

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