from the following facts,for the units produced depreciation what is given cost - $40,000 residual value - $5,000 est total units produced for useful life calculation - $100,00 units produced per year: year 1 -20,000 year 2- 15,000 year 3- 25,000 year 4- 32,000 year 5- 17,000 year 6 - 15,000 required; number of years the equipment is depreciated
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.
from the following facts,for the units produced
given
cost - $40,000
residual value - $5,000
est total units produced for useful life calculation - $100,00
units produced per year:
year 1 -20,000
year 2- 15,000
year 3- 25,000
year 4- 32,000
year 5- 17,000
year 6 - 15,000
required; number of years the equipment is depreciated
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