In regards to "Straight Line Depreciation (B=$1000, S=$0, N=10) vs. Declining Balance (B=$1000, D=10%)", what i declining balance depreciation is having D=30%, then (a) what is the BV at the end of the 10th year: $ (keep two decimal places) (b) in the comparison chart, is the declining balance depreciation line straightly above intersect in the middle of the two lines intersect at the end of the two lines when it reaches salvage straightly below ◆ the straight line depreciation line.
In regards to "Straight Line Depreciation (B=$1000, S=$0, N=10) vs. Declining Balance (B=$1000, D=10%)", what i declining balance depreciation is having D=30%, then (a) what is the BV at the end of the 10th year: $ (keep two decimal places) (b) in the comparison chart, is the declining balance depreciation line straightly above intersect in the middle of the two lines intersect at the end of the two lines when it reaches salvage straightly below ◆ the straight line depreciation line.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
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