On January 1, 2025, the accumulated Depreciation— Machinery account of a particular company showed a balance of $1480000.At the end of 2025, after the adjusting entries were posted, it showed a balance of $1590000. In 2025, one of the machines which cost $495000 was sold for $241000 cash. This resulted in a loss of $17700.Assuming that no other assets were disposed of during the year, how much was depreciation expense for 2025?

Q: Intermediate Accounting 105   May I please have a GAAP explanation, along with examples providing…

A: The objective of the question is to understand the conditions under which a short-term obligation…

Q: Define disbursement float

A: Disbursement float is a technique by which entity manages the cash as when a firm disburses the…

Q: Chapter 10, Question 16: What are contingent liabilities? List three examples of contingent…

A: Contingent liabilities are the liabilities which will arise on the happening or not unhappening of…

Q: Intermediate Accounting 105   May I please have a GAAP explanation, along with examples providing…

A: Under Generally Accepted Accounting Principles (GAAP), short-term obligations are generally…

Q: Net income may be based on estimates.   true or False

A: Net income: Net income is the revenue of the company after deducting all the expenses and taxes. It…

Q: what the difference between accounting income and economic income?

A: Accounting income can be defined as an estimate of the performance in the operations of the company.…

Q: 6. Explain: "agency debt"

A: Agency debt refers to bonds that are issued by government-sponsored entities (GSEs) such as Fannie…

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.