Using the double - declining balance method, depreciation for 2018, and the book value at December 31, 2018, would be: Select one: Oa depreciation 28,800 and book value 37,200. b depreciation 28,800 and book value 43,200. c. depreciation 26,400 and book value 45,600 d.depreciation 26,400 and book value 36,600
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.
Al Qurum Enterprises purchased equipment for OR 72,000 on January 1, 2018. The equipment is expected to have a five - year life and a residual value of OR 6,000.
Using the double - declining balance method,
Select one:
Oa depreciation 28,800 and book value 37,200.
b depreciation 28,800 and book value 43,200.
c. depreciation 26,400 and book value 45,600
d.depreciation 26,400 and book value 36,600
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
