Fill in the book value at the end of year 1 under each depreciation method when residual value is $36,000 and useful life is 4 years: Depreciation method : Straight line: __________ Units-of-Output: ___________ Double-declining: _____________ Move the useful life slider from 3 years to 4 years and complete the sentence. Depreciation expense each year under every method is _________ when the cost is spread over a longer useful life.
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.
Fill in the book value at the end of year 1 under each
Depreciation method :
Straight line: __________
Units-of-Output: ___________
Double-declining: _____________
Move the useful life slider from 3 years to 4 years and complete the sentence.
Depreciation expense each year under every method is _________ when the cost is spread over a longer useful life.
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