1. Residual value is deducted in calculating the depreciation base in all of the depreciation methods except the? Choices: units of production method. diminishing -balance method. straight-line method. sum-of-the-years’-digits method 2. On January 1, 2010, Graham Company purchased a new machine for P2,100,000. The new machine has an estimated useful life of nine years and the residual value was estimated to be P75,000. Depreciation was computed on the sum-of-the-years'-digits method. What amount should be shown in Graham's balance sheet at December 31, 2011, net of accumulated depreciation, for this machine? Choices: 1695000 1335000 1306666 1244250
1. Residual value is deducted in calculating the depreciation base in all of the depreciation methods except the? Choices: units of production method. diminishing -balance method. straight-line method. sum-of-the-years’-digits method 2. On January 1, 2010, Graham Company purchased a new machine for P2,100,000. The new machine has an estimated useful life of nine years and the residual value was estimated to be P75,000. Depreciation was computed on the sum-of-the-years'-digits method. What amount should be shown in Graham's balance sheet at December 31, 2011, net of accumulated depreciation, for this machine? Choices: 1695000 1335000 1306666 1244250
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 10SPB: IMPACT OF IMPROVEMENTS AND REPLACEMENTS ON THE CALCULATION OF DEPRECIATION On January 1, 20-1, Dans...
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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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1. Residual value is deducted in calculating the depreciation base in all of the depreciation methods except the?
Choices:
diminishing -balance method.
straight-line method.
sum-of-the-years’-digits method
2. On January 1, 2010, Graham Company purchased a new machine for P2,100,000. The new machine has an estimated useful life of nine years and the residual value was estimated to be P75,000. Depreciation was computed on the sum-of-the-years'-digits method. What amount should be shown in Graham's balance sheet at December 31, 2011, net of accumulated depreciation , for this machine?
Choices:
1695000
1335000
1306666
1244250
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