During 2018, a team was sold for $ 39,000. The equipment had originally been purchased for $ 64,000 and had a book value of $ 36,000 at the time of sale. The balance of the Accumulated Depreciation account as of December 31, 2017 was $ 172,000 and as of December 31, 2018 it was $ 184,000. Determine the depreciation adjustment to be made to net income if the Indirect Method is used to report operating activities in the Statement of Cash Flows. Select one: a. $ 40,000. b. $ 76,000. c. $ 48,000. d. $ 28,000.
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.
42.During 2018, a team was sold for $ 39,000. The equipment had originally been purchased for $ 64,000 and had a book value of $ 36,000 at the time of sale. The balance of the
Select one:
a. $ 40,000.
b. $ 76,000.
c. $ 48,000.
d. $ 28,000.
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