During 2015, XYZ Enterprises sold a piece of machinery, which originally cost $40,000, for $12,000. This sale resulted in a gain of $2,000. Also during 2015, XYZ's Accumulated Depreciation account (for all fixed assets) increased from $200,000 to $210,000. How much did XYZ report as Depreciation Expense for 2015 (for all fixed assets)? There were no fixed asset impairments during 2015.

During 2015, XYZ Enterprises sold a piece of machinery, which originally cost $40,000, for $12,000. This sale resulted in a gain of $2,000. Also during 2015, XYZ's Accumulated Depreciation account (for all fixed assets) increased from $200,000 to $210,000. How much did XYZ report as Depreciation Expense for 2015 (for all fixed assets)? There were no fixed asset impairments during 2015.

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Description: During 2015, XYZ Enterprises sold a piece of machinery, which originally cost$40,000, for $12,000. This sale resulted in a gain of $2,000. Also during 2015,XYZ's Accumulated Depreciation account (for all fixed assets) increased from$200,000 to $210,

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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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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Question

During 2015, XYZ Enterprises sold a piece of machinery, which originally cost
$40,000, for $12,000. This sale resulted in a gain of $2,000. Also during 2015,
XYZ's Accumulated Depreciation account (for all fixed assets) increased from
$200,000 to $210,000. How much did XYZ report as Depreciation Expense
for 2015 (for all fixed assets)? There were no fixed asset impairments during
2015.

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