2. Suppose an item of asset acquired on 5th Jan at the cost of P 50000 has estimated use of 20000 hours. During the first year, the said equipment used was 4000 hours. The estimated salvage value is 4000. Calculate the depreciation expense during the year.

2. Suppose an item of asset acquired on 5th Jan at the cost of P 50000 has estimated use of 20000 hours. During the first year, the said equipment used was 4000 hours. The estimated salvage value is 4000. Calculate the depreciation expense during the year.

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 6CE

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Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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