Please complete the answer for this draw also teh diagram like the given example. Determine how much depreciation, at the end of year 3 would a farm machinery have if it was bought at $100,000, using the MACRS method of depreciation.
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.
Please complete the answer for this draw also teh diagram like the given example.
Determine how much
bought at $100,000, using the MACRS method of depreciation.
Attached image is the example:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
