Aeetal company has acquired a new heavy duty crane for $300.000 The company calculates depreciation on this equipment on the basis of number of rentals per year and the salvage value of the crane at the end of its 7-year fe is $25,000. If the crane is rented an average of 142 days per year what is the depreciation ate per renta The deprediation is S per day of rent (Round to the nearest dollar)
Aeetal company has acquired a new heavy duty crane for $300.000 The company calculates depreciation on this equipment on the basis of number of rentals per year and the salvage value of the crane at the end of its 7-year fe is $25,000. If the crane is rented an average of 142 days per year what is the depreciation ate per renta The deprediation is S per day of rent (Round to the nearest dollar)
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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