I am trying to get answers using a straight-line depreciation, double-declining deprestion and the units of production depreciation. There is 3 companies and each purchased trucks for 68000 in a year. Each truck is expected to last 4 years or 20000 miles. salvage value : 6000 all 3 drove and in: year 1- 65000 year 2-40000 year 3-38000 year 4- 60000 EAch of the 3 companies earned 57000 of cash revenue each 4 years a. how do I calculate the net income for each company in yr1 ? b. get the net income for year 4 c. get book value at the end of year 3
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.
I am trying to get answers using a straight-line
salvage value : 6000
all 3 drove and in:
year 1- 65000
year 2-40000
year 3-38000
year 4- 60000
EAch of the 3 companies earned 57000 of cash revenue each 4 years
a. how do I calculate the net income for each company in yr1 ?
b. get the net income for year 4
c. get book value at the end of year 3
d. get the
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