Depreciation : It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear or, obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life. Depletion: It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted. Amortization: Itis the process of allocating the value of an intangible asset over its definite useful life. To explain: The similarities and differences among depreciation, depletion, and amortization.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 11, Problem 11.1Q

To determine

Depreciation:

It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear or, obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Depletion:

It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted.

Amortization:

Itis the process of allocating the value of an intangible asset over its definite useful life.

To explain: The similarities and differences among depreciation, depletion, and amortization.

Expert Solution & Answer

Explanation of Solution

The term depreciation, depletion and amortization are the similar methods used for allocating the cost of tangible and intangible assets based on the useful life. But each term of cost allocation is used to a different type of long-term assets.

Depreciation is used for plant and equipment,
Depletion is used for natural resources, and
Amortization is used for intangible assets.

There are some differences in determining the factor of depreciation, depletion, and amortization, but the concepts involved in the cost allocation are same.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Blair Equipment Co. of New Zealand manufactures outdoor gear. One of the company's products, a hiking backpack for the Asian market, requires a special nylon fabric. During the quarter ending June 30, the company manufactured 4,200 backpacks, using 3,150 meters of fabric. The fabric cost the company $24,570. According to the standard cost card, each backpack should require 0.72 meters of fabric, at a cost of $7.50 per meter. According to the standards, what cost for fabric should have been incurred to make 4,200 backpacks? How much greater or less is this than the cost that was incurred?

I am looking for the most effective method for solving this financial accounting problem.

Can you explain the correct approach to solve this general accounting question?

Answer 2

Question

Chapter 11, Problem 11.1Q

To determine

Depreciation:

It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear or, obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Depletion:

It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted.

Amortization:

Itis the process of allocating the value of an intangible asset over its definite useful life.

To explain: The similarities and differences among depreciation, depletion, and amortization.

Expert Solution & Answer

Explanation of Solution

The term depreciation, depletion and amortization are the similar methods used for allocating the cost of tangible and intangible assets based on the useful life. But each term of cost allocation is used to a different type of long-term assets.

Depreciation is used for plant and equipment,
Depletion is used for natural resources, and
Amortization is used for intangible assets.

There are some differences in determining the factor of depreciation, depletion, and amortization, but the concepts involved in the cost allocation are same.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 11, Problem 11.1Q

To determine

Depreciation:

It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear or, obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Depletion:

It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted.

Amortization:

Itis the process of allocating the value of an intangible asset over its definite useful life.

To explain: The similarities and differences among depreciation, depletion, and amortization.

Expert Solution & Answer

Explanation of Solution

The term depreciation, depletion and amortization are the similar methods used for allocating the cost of tangible and intangible assets based on the useful life. But each term of cost allocation is used to a different type of long-term assets.

Depreciation is used for plant and equipment,
Depletion is used for natural resources, and
Amortization is used for intangible assets.

There are some differences in determining the factor of depreciation, depletion, and amortization, but the concepts involved in the cost allocation are same.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 11, Problem 11.1Q

To determine

Depreciation:

It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear or, obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Depletion:

It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted.

Amortization:

Itis the process of allocating the value of an intangible asset over its definite useful life.

To explain: The similarities and differences among depreciation, depletion, and amortization.

Expert Solution & Answer

Explanation of Solution

The term depreciation, depletion and amortization are the similar methods used for allocating the cost of tangible and intangible assets based on the useful life. But each term of cost allocation is used to a different type of long-term assets.

Depreciation is used for plant and equipment,
Depletion is used for natural resources, and
Amortization is used for intangible assets.

There are some differences in determining the factor of depreciation, depletion, and amortization, but the concepts involved in the cost allocation are same.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 11, Problem 11.1Q

To determine

Depreciation:

It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear or, obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Depletion:

It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted.

Amortization:

Itis the process of allocating the value of an intangible asset over its definite useful life.

To explain: The similarities and differences among depreciation, depletion, and amortization.

Expert Solution & Answer

Explanation of Solution

The term depreciation, depletion and amortization are the similar methods used for allocating the cost of tangible and intangible assets based on the useful life. But each term of cost allocation is used to a different type of long-term assets.

Depreciation is used for plant and equipment,
Depletion is used for natural resources, and
Amortization is used for intangible assets.

There are some differences in determining the factor of depreciation, depletion, and amortization, but the concepts involved in the cost allocation are same.

Answer 6

Chapter 11, Problem 11.1Q

To determine

Depreciation:

It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear or, obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Depletion:

It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted.

Amortization:

Itis the process of allocating the value of an intangible asset over its definite useful life.

To explain: The similarities and differences among depreciation, depletion, and amortization.

Expert Solution & Answer

Explanation of Solution

The term depreciation, depletion and amortization are the similar methods used for allocating the cost of tangible and intangible assets based on the useful life. But each term of cost allocation is used to a different type of long-term assets.

Depreciation is used for plant and equipment,
Depletion is used for natural resources, and
Amortization is used for intangible assets.

There are some differences in determining the factor of depreciation, depletion, and amortization, but the concepts involved in the cost allocation are same.

Answer 7

Chapter 11, Problem 11.1Q

To determine

Depreciation:

It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear or, obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Depletion:

It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted.

Amortization:

Itis the process of allocating the value of an intangible asset over its definite useful life.

To explain: The similarities and differences among depreciation, depletion, and amortization.

Answer 8

Expert Solution & Answer

Explanation of Solution

The term depreciation, depletion and amortization are the similar methods used for allocating the cost of tangible and intangible assets based on the useful life. But each term of cost allocation is used to a different type of long-term assets.

Depreciation is used for plant and equipment,
Depletion is used for natural resources, and
Amortization is used for intangible assets.

There are some differences in determining the factor of depreciation, depletion, and amortization, but the concepts involved in the cost allocation are same.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 11 - Prob. 11.1Q Ch. 11 - Depreciation is a process of cost allocation, not...Ch. 11 - Identify and define the three characteristics of...Ch. 11 - Discuss the factors that influence the estimation...Ch. 11 - What is meant by depreciable base? How is it...Ch. 11 - Prob. 11.6Q Ch. 11 - Prob. 11.7Q Ch. 11 - Why are time-based depreciation methods used more...Ch. 11 - Prob. 11.9Q Ch. 11 - Prob. 11.10Q

Explanation of Solution

Want to see more full solutions like this?

Chapter 11 Solutions