Jenny purchased equipment at the beginning of July 2017 for $250,000. Jenny decided to depreciate the equipment over a ten-year period using the reducing-balance method (using 1.8 times the straight line rate). Jenny's accountant estimated the equipment's residual value at $25,000. Which of the following statements is correct concerning Jenny's financial statements at 30 June 2019? The carrying amount of the equipment is $205,000 The total accumulated depreciation is $82,000 Depreciation expense for 2019 is $37,000 O The carrying amount of the equipment is $168,100

Jenny purchased equipment at the beginning of July 2017 for $250,000. Jenny decided to depreciate the equipment over a ten-year period using the reducing-balance method (using 1.8 times the straight line rate). Jenny's accountant estimated the equipment's residual value at $25,000. Which of the following statements is correct concerning Jenny's financial statements at 30 June 2019? The carrying amount of the equipment is $205,000 The total accumulated depreciation is $82,000 Depreciation expense for 2019 is $37,000 O The carrying amount of the equipment is $168,100

Name: Jenny purchased equipment at the beginning of July 2017 for $250,000.
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Description: Jenny purchased equipment at the beginning of July 2017 for $250,000.Jenny decided to depreciate the equipment over a ten-year period usingthe reducing-balance method (using 1.8 times the straight line rate).Jenny's accountant estimated the equipmen

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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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Jenny purchased equipment at the beginning of July 2017 for $250,000.
Jenny decided to depreciate the equipment over a ten-year period using
the reducing-balance method (using 1.8 times the straight line rate).
Jenny's accountant estimated the equipment's residual value at $25,000.
Which of the following statements is correct concerning Jenny's financial
statements at 30 June 2019?
The carrying amount of the equipment is $205,000
The total accumulated depreciation is $82,000
Depreciation expense for 2019 is $37,000
O The carrying amount of the equipment is $168,100

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