4. Net income for Jimin Company for 2020 includes the effect of the following transactions involving the sale of fixed assets: Sales Price P20,000 25,000 Purchases of fixed assets during 2020 amounted to P340,000. The Accumulated Depreciation account increased P40,000 during 2020. How much is the depreciation expense for 2020? Cost P 80,000 150,000 Gain (Loss) Р 10,000 (18,000) Asset Y
4. Net income for Jimin Company for 2020 includes the effect of the following transactions involving the sale of fixed assets: Sales Price P20,000 25,000 Purchases of fixed assets during 2020 amounted to P340,000. The Accumulated Depreciation account increased P40,000 during 2020. How much is the depreciation expense for 2020? Cost P 80,000 150,000 Gain (Loss) Р 10,000 (18,000) Asset Y
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...
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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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