The XYZ Block Company purchased a new ofce computer and other depreciable computer hardware for 4800 During the third year the computer is declared obsolete and is donated to the local community college Using an interest rate of 15 calculate the PW of the depreciation deductions using each of the following methods Assume that no salvage value was initially declared and that the machine was expected to last five 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.
The XYZ Block Company purchased a new ofce computer and other
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