What is the cost of the land, based upon the following data? Land purchase price $192,605 Broker's commission 15,004 Payment for the demolition and removal of existing building 4,204 Cash received from the sale of materials salvaged from the demolished building 1,211 $fill in the blank 1
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.
What is the cost of the land, based upon the following data?
| Land purchase price | $192,605 |
| Broker's commission | 15,004 |
| Payment for the demolition and removal of existing building | 4,204 |
| Cash received from the sale of materials salvaged from the demolished building | 1,211 |
$fill in the blank 1
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
