Dirt Corporation schedule of depreciable assets at December 31, 20X7 was as follows: Accum. Acquisition date 20X6 Depreciation 64,000 36,000 33,600 Residual value 20,000 10,000 14,000 Asset A Cost 100,000 55,000 70,000 в 20X5 20X5 Dirt takes a full year's depreciation expense in the year of an asset's acquisition, and no depreciation expense in the year of an asset's disposition. The estimated useful life of each depreciable asset is ! years.
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.
1. Dirt depreciates asset A on the double-declining-balance method. How much
2. Dirt depreciates asset A on the double-declining-balance method. How much depreciation expense should Dirt record in 20X9 for asset A?
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