IThe following information applies to the questions displayed below) Solich Sandwich Shop had the following long-term asset balances as of December 31, 2015 Accumulated Depreciation Book Value Cost 85,000 85,000 Land 450.000 $085,500 364,500 Building (48,000) 250,000 Equipment 202,000 Patent 200.000 120,000 (80,000) Solich purchased all the assets at the beginning of 201313 years ago). The bullding is depreciated over a 20. year service life using the double-decllning balance method and estimatlng no residual value. The equipment is depreclated over a 10-year useful life usIng the straight-llne method with an estimated residual value of $10,000. The patent ls estimated to have a five-year service life with no residual value and Is amortized using the straight-line method. value 10.00 points Required: 1. For the year ended December 31, 2015, record depreciation expense for buildings and equipment Land is not depreciated. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list journal entry worksheet General Journal Transaction Debit Credit
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.
IThe following information applies to the questions displayed below) Solich Sandwich Shop had the following long-term asset balances as of December 31, 2015
The bullding is
The patent ls estimated to have a five-year service life with no residual value and Is amortized using the straight-line method. value 10.00 points Required:
1. For the year ended December 31, 2015, record depreciation expense for buildings and equipment Land is not depreciated. (If no entry is required for a transaction/event, select "No
Depreciation means the decline in the value of the asset because of its wear and tear, obsolescence etc. Straight line method of depreciation includes the fixed rate till the beneficial life of asset and it is multiplied with the initial book value of asset every year. Double declining method includes the rate of straight line method but doubled.
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