The entry to record depreciation for this same asset in year two will include a Select one: a. credit to Accumulated Depreciation for P150,000. b. debit to Depreciation Expense for P250,000. c. debit to Depreciation Expense for P200,000. d. debit to Accumulated Depreciation for P200,000.

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A: The depreciation expense is charged on the fixed assets as a reduction on the value of the fixed…

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A: Given that: Original cost = P100,000 Life = 10 years

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A:

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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.