On January 1, 2019, ABC Company leased an office building with the following terms: Annual rental at the end of each year P 300,000 Lease term and useful life of the building 4 years The implicit rate in the lease 12% On January 1, 2021 the lessee and the lessor agreed to amend the original terms of the lease with the following information: Annual rental payable at end of each year P 300,000 Extension of lease term 2 years The implicit rate in the lease 14%

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: Under what conditions is the use of the straight-line depreciation method most appropriate?

A: There are different methods of depreciation and one such method is straight line method of…

Q: What is group depreciation method?

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: What are two major types of depreciation?

A: In general terms, depreciation is a decline in the value of long-term tangible assets. In…

Q: Explain the straight-line method of depreciation with an example?

A:

Q: The depreciation procedures that apply to the main kinds of depreciable assets in general?

A: Depreciation is an accounting method for allocating the cost of a tangible or physical asset over…

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: Why is the recording of depreciation expense necessary?

A: Introduction:- Depreciation is non cash expenses. Which is charged on fixed asset. Which is charged…

Q: How did you calculate your depreciation?

A: MACRS (Modified Accelerated Cost Recovery System) is a depreciation method used for tax purposes,…

Q: erent methods of calculating depreciation.

A:

Q: Should the engineers be able to assess the reality of depreciating fixed assets?

A: A company should assess the position of its fixed asset and check for its impairment if condition…

Q: Is residual value deductible when using accelerated method of depreciation>

A: The accelerated method of depreciation includes double declining balance method, 150% declining…

Q: What is impairment in the context of intangible assets?

A: Non-physical assets without physical substance but with economic worth to a business or individual…

Q: What are the pronouncements made by IFRS on Depreciation?

A: IFRS (International Financial Reporting Standards) provide guidelines on how to account for…

Q: What is depreciation of property, plant and equipment? What are the factors to consider in computing…

A: Depreciation Depreciation is the term which is used for the business to deduct the amount…

Q: Depreciation expense is used to

A: Depreciation is gradual decrease in the value of asset due to normal wear and tear, obsolescence and…

Q: What are some recommendations to the pronouncements on depreciation?

A: Depreciation refers to the decrease in the value of a fixed asset over time due to wear and tear,…

Q: How do you figure units-of-production method depreciation?

A: The business entities are required to charge the depreciation expense on their assets so that the…

Q: In what circumstances should the units-of-activity depreciation method be used?

A: INTRODUCTION: Fixed assets are long-term tangible assets utilized by businesses to generate profits.…

Q: epreciation

A: Depreciation is an expense which is charged on fixed assets and reduces the value of fixed assets…

Q: What do you understand by 'Depreciation'? How many methods of depreciation do we have? Explain your…

A: Depreciation is a term used in accounting, economics, and finance, referring to the decrease in…

Q: What is the definition/meaning of Depreciation and Accumulated Depreciation in simple words? Please…

A: Depreciation:-Depreciation refers to the systematic allocation of the cost of a tangible asset over…

Q: at formula for depreciation expense

A: Depreciation is an accounting concept that distributes the expense of a physical item across its…

Q: What factors must be known or estimated in order to compute depreciation expense?

A: Definition: Depreciation: Depreciation is a decrease in the value of the fixed assets over a period…