On January 2, 2023, Saminski, Inc., acquired equipment for $400,000. . The estimated life of the equipment is 5 years. The estimated residual value is $40,000. . What is the Accumulated Depreciation of the equipment on December 31, 2024, if Saminski uses the double - declining balance method of depreciation? (Round intermediary calculations to two decimal places and your final answer to the nearest dollar.) A. $96,000 B. $256,000 C. $144,000 D.$ 160,000
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.
On January 2, 2023, Saminski, Inc., acquired equipment for $400,000. . The estimated life of the equipment is 5 years. The estimated residual value is $40,000. . What is the
Step by step
Solved in 3 steps
