Noah Corp., a calendar year-end company, purchased equipment on 1/1/X1 with the following attributes: Cost $ 25,000 Salvage Value $ 2,000 Useful life 4 years Assuming that Duncan uses the double-declining balance (DDB) depreciation method, answer the following question: Question: How much depreciation expense should be recorded in 20X4 (year four of the asset's life)? Answer- $ ___
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.
Noah Corp., a calendar year-end company, purchased equipment on 1/1/X1 with the following attributes:
| Cost | $ 25,000 |
| Salvage Value | $ 2,000 |
| Useful life | 4 years |
Assuming that Duncan uses the double-declining balance (DDB)
Question: How much depreciation expense should be recorded in 20X4 (year four of the asset's life)?
Answer- $ ___
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