How do I solve the following with complete solution in Excel format: An engine bought for Php 1,800,000.00 has a service life of 13 yrs which can then estimated to be valued at Php 500,000.00. Perform all 5 depreciation methods if the interest is 7% compounded annually. The following must be presented: Tabular form in exact order: Year, Depreciation charge on each year, Total depreciation on each year, Book Values Book value curves of each methods all in ONE graph with proper and identifiable labeling.
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.
How do I solve the following with complete solution in Excel format:
An engine bought for Php 1,800,000.00 has a service life of 13 yrs which can then estimated to be valued at Php 500,000.00. Perform all 5
- Tabular form in exact order: Year, Depreciation charge on each year, Total depreciation on each year, Book Values
- Book value
curves of each methods all in ONE graph with proper and identifiable labeling.
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