Notorious Company provided the following data related to anı equipment on the date of revaluation: Cost Replacement cost 9,200,000 200,000 Equipment Residual value Useful life in years Age of the machinery Accumulated depreciation 6,500,000 500,000 12

Q: what do we do with depreciation?

A: Depreciation expense is a non-cash expense that decreases the net income and hence the income tax…

Q: What is residual value or salvage value? Why and how is it calculated in accounting?

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: How does straight-line depreciation work? What about descending?

A: Depreciation - Depreciation means wear and tear of the assets owned by the company. Depreciation is…

Q: Residual value is: A. Also called residual value. B. Also called scrap value. C. An estimate of the…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: Do I have to include depreciation when computing net present value?

A: Depreciation is said to be none cash expense so there is no out flow of cash when depreciation…

Q: discuss the advantages and disadvantages of residual income

A: INTRODUCTION: The excess of net income over the required minimum return is known as residual income.…

Q: What is meant by depreciable base? How is it determined?

A: Depreciable base: The word depreciable base is used to depict the value that is divided by the…

Q: st of googs sold and intrest expens

A: The cost of goods sold can be calculated by using the inventory turnover ratio. Inventory turnover…

Q: The cost of an asset that is subject to depreciation os called?

A: Assets: Assets are those resources that are owned by the business organization which has an economic…

Q: Write the fraction obtained from the straight-line depreciation rate?

A: Depreciation expense accounts for the decline in the value of assets used in the business due to…