Please no written by hand solutions PLEASE EXPLAIN IN DETAIL!!!! A plant asset was purchased on January 1 for $47000 with an estimated salvage value of $5000 at the end of its useful life. The current year's depreciation expense is $3000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $12000. The remaining useful life of the plant asset is 16 years. 14 years. 10 years. 12 year
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 no written by hand solutions
PLEASE EXPLAIN IN DETAIL!!!!
A plant asset was purchased on January 1 for $47000 with an estimated salvage value of $5000 at the end of its useful life. The
current year's
account at the end of the year is $12000. The remaining useful life of the plant asset is
16 years.
14 years.
10 years.
12 years.
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