lay yuesIUn On April 30, 2020, Doufar Corporation purchased equipment for OR360,000. The equipment is expected to have a six-year useful life with no residual value. Doufar uses the straight-line depreciation method for all equipment. On December 31, 2020, Doufar were chooses to revalue the equipment to its fair value of OR320,000. Required Depreciation for 2020 would be: OR ........ The Equipment after revaluation would be: OR ........... The Accumulated depreciation after revaluation would be:OR ............ The Revaluation surplus after revaluation would be: OR .............
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.
lay yuesIUn On April 30, 2020, Doufar Corporation purchased equipment for OR360,000. The equipment is expected to have a six-year useful life with no residual value. Doufar uses the
Required Depreciation for 2020 would be: OR ........
The Equipment after revaluation would be: OR ...........
The
The Revaluation surplus after revaluation would be: OR .............
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