How much is the goodwill/gain on bargain purchase?

Q: The difference between book value of the asset with the proceeds receive from its sale, with result…

A: Assets:   It refers to the economic value of all resources owned by the business at a given point in…

Q: what is accounting for goodwill and what are its implications?

A: Goodwill is an intangible asset. It generally arises from the acquisition of a business. In other…

Q: What is goodwill? What is a bargain purchase?

A:

Q: What Is Goodwill And How Is It Accounted For?

A: Definition:   Goodwill: Goodwill is a good reputation developed by a company over the years. This is…

Q: When are the original cost and current book value are relevant?

A: Orginal cost is the cost paid to acquire the assets  Whereas the current book value is the value of…

Q: what are some pros and cons of holding high level of current assets in relation to sale?

A:

Q: What is a capitalization rate? What are the different ways of arriving at this rate for an…

A: Capitalization rate: Capitalization rate is the projected rate of return percentage that a property…

Q: Is goodwill a long-lived asset?

A: Goodwill is known as asset that includes company image. It is an intangible assets which do not…

Q: with what internal and external entities does the purchasing process interact?

A: The purchasing process is a key function within an organization that involves buying goods and…

Q: How should goodwill be amortized?

A: Goodwill is an example of intangible assets which has no physical identity.

Q: What are the two types of merchandisers? How do they differ?

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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.