EXERCISE-3 DEPRECIATION AND DEPLETION 6. A concrete hollow block (CHB) machine costs P40,000 and the salvage value is P4,000 after 6 years. If it can make 108,000 pieces of hollow blocks within the useful life, find the depreciation charge at the year 1999 if it made 15,000 pieces only.

EXERCISE-3 DEPRECIATION AND DEPLETION 6. A concrete hollow block (CHB) machine costs P40,000 and the salvage value is P4,000 after 6 years. If it can make 108,000 pieces of hollow blocks within the useful life, find the depreciation charge at the year 1999 if it made 15,000 pieces only.

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Description: EXERCISE-3DEPRECIATION AND DEPLETION6. A concrete hollow block (CHB) machine costs P40,000 and the salvage valueis P4,000 after 6 years. If it can make 108,000 pieces of hollow blocks withinthe useful life, find the depreciation charge at the year 1

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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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EXERCISE-3
DEPRECIATION AND DEPLETION
6. A concrete hollow block (CHB) machine costs P40,000 and the salvage value
is P4,000 after 6 years. If it can make 108,000 pieces of hollow blocks within
the useful life, find the depreciation charge at the year 1999 if it made 15,000
pieces only.

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