A company purchased factory equipment on June 1,2021 , for $151000. It is estimated that the equipment will have a $8200 salvage value at the end of its 10 -year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2021, is $8330. $14280. $5950. $7140
A company purchased factory equipment on June 1,2021 , for $151000. It is estimated that the equipment will have a $8200 salvage value at the end of its 10 -year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2021, is $8330. $14280. $5950. $7140
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 8MC: On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was...
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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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A company purchased factory equipment on June 1,2021 , for $151000. It is estimated that the equipment will have a $8200 salvage value at the end of its 10 -year useful life. Using the straight-line method of depreciation , the amount to be recorded as depreciation expense at December 31, 2021, is $8330. $14280. $5950. $7140
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