An asset that is book-depreciated over a 5-year period by the straight-line method has BV3 = ₱ 62,000 with a depreciation charge of ₱ 26,000 per year. Determine (a) the first cost of the asset and (b) the assumed salvage value

An asset that is book-depreciated over a 5-year period by the straight-line method has BV3 = ₱ 62,000 with a depreciation charge of ₱ 26,000 per year. Determine (a) the first cost of the asset and (b) the assumed salvage value

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 9MC: A fixed asset with a 5-year estimated useful life is sold during the second year. How would the use...

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Question

4. An asset that is book-depreciated over a 5-year period by the straight-line
method has BV3 = ₱ 62,000 with a depreciation charge of ₱ 26,000 per
year. Determine (a) the first cost of the asset and (b) the assumed salvage
value

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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