The purchose price of on ecuipment is $45,000 which is expectec to crop to $14,000 after 10 yeors of use. If the applicoble deprecietion methco is the streight line depreciation whet is the book value of this equipment ot the beginning of the Bth yecr? O a. $23,300 Ob. S24,800 Oc. $2,700 O d. $3 100 O e $20 200
The purchose price of on ecuipment is $45,000 which is expectec to crop to $14,000 after 10 yeors of use. If the applicoble deprecietion methco is the streight line depreciation whet is the book value of this equipment ot the beginning of the Bth yecr? O a. $23,300 Ob. S24,800 Oc. $2,700 O d. $3 100 O e $20 200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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![The purchase price of on ocuipment is $45,000 which is expected to crop to $14,000 after 10 yecrs of use.If
the applicoble ceprecietion methco is the streight fine depreciotion whot is the book volue of this
equipment ot the beginning of the Bth yecr?
tof
O a. $23,300
O b. $24,800
O c. S21,700
O d. $3 100
O e. $20 200
What is the value of (r/A LN) Ir (P/A, N = 6.16587
O o. 30829
O b. 24.2804
O c. 5.5492
O d. 6.1658
O e. 1.0000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbf133112-81a9-4fed-98ab-5cbfde9c1975%2F51c871d9-187d-49bf-97fa-fb6fa2da5a9e%2Fjvhreiq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The purchase price of on ocuipment is $45,000 which is expected to crop to $14,000 after 10 yecrs of use.If
the applicoble ceprecietion methco is the streight fine depreciotion whot is the book volue of this
equipment ot the beginning of the Bth yecr?
tof
O a. $23,300
O b. $24,800
O c. S21,700
O d. $3 100
O e. $20 200
What is the value of (r/A LN) Ir (P/A, N = 6.16587
O o. 30829
O b. 24.2804
O c. 5.5492
O d. 6.1658
O e. 1.0000
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