A company purchased factory equipment on June 1, 2017, for $160,000. It is estimated that the equipment will have a $10,000 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, 2017, is Select one: a. $8,750. b. $6,250. c. $15,000. d. $7,500.

Q: ABC Company purchased an equipment on September 1, 2015 for $230,000. The salvage value of the…

A: Depreciation expense (sum-of-the-years' digits method ) = (Cost of the assets - Salvage…

Q: Kate Company purchased a tractor at a cost of $120,000.  The tractor has an estimated salvage value…

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A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/8 years) x 2 = 25%

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A: Compute depreciation for the year 2016.

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Q: Pearson Company bought a machine on January 1, 2017. The machine cost $180,000 and had an expected…

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A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

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A: Sum of the year’s digits method: this method determines the depreciation expense by multiplying the…

Q: Rexford Company purchased a machine on January 1, 2017, for $57,600 cash. The machine has an…

A: Answer) Calculation of carrying value of machine on December 31, 2018 Carrying Value of Machine as…

Q: Corzi Corporation purchased a Machine on January 1, 2017 for $80,000. The machinery is estimated to…

A: Under sum of the year digits method, the depreciation is calculated on the basis of depreciation…

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A: Straight line method: The value of an asset is diminished  equally  in  each period till it reaches…

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A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

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A: Answer  (d) 1,400,000

Q: A company purchased factory equipment on June 1, 2017, for $160,000. It is estimated that the…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

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A: Depreciation is an expense that is charged against profit due to wear and tear with the passage of…

Q: Rigorous Company purchased a machine on July 1, 2017 for 6,000,000.  The machine has an estimated…

A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…

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A: Depreciation refers to allocation of value of fixed asset over life time of that asset. Depreciation…

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A: Under Straight Line method : Yearly Depreciation = Cost of asset - salvage valueuseful life…

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A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

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A:

Q: (a) Faster Company purchased equipment in 2010 for $104,000 and estimated an $8,000 salvage value at…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

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A: Depreciation can be defined as the accounting method that allocates the cost of a tangible asset…

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Q: Lockard Company purchased machinery on January 1, 2017, for $80,000. The machinery is estimated to…

A: Depreciation:   Depreciation refers to the reduction in the monetary value of a fixed asset due to…

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A: Depreciable cost = $12,600 - $1,200 = $11,400

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A: Formula used: Depreciation rate = ( 100 / Useful life years ) x 2

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A: Depreciation is the allocation of the cost of an asset over the useful life of an asset.

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A: Depreciation Accounting is the method of debiting the cost of an asset and crediting it to a…

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A: Straight-line depreciation method: The depreciation method which assumes that the consumption of…

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A: Formula: Depreciation rate = ( 100 / Useful life years )

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A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

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A: a.  Calculation of depreciation for year 2017 : Yearly Depreciation under straight line method  =…

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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.