Answer both A and B questions. A. What are the differences between the Straight-Line Depreciation and Written Down Value Method? (Minimum of three sentences). B. A Manufacturing company in Oman purchased a machine on, 1st of September 2015, at a cost of OMR 50,000, with an estimated salvage value of RO 7,000. It is expected that the asset will be useful for 5 years. Assume that the company use straight line method for calculating depreciation. Calculate the following. 1. What is the depreciation expense for the machine during 2015 and 2016? 2. Calculate the book value of the asset at the end of 2015 and 2016. 3. Prepare a table for the following: Year, Cost, Depreciation, Accumulated Depreciation and Book Value

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

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A: a. Sum of year digit method:

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Q: On January 1, 2016 Murgatroyd Co. purchased equipment for OMR 30,000, estimating a four-year useful…

A: Depreciation is the decrease in the value of an asset due to various reasons like wear and tear,…

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A: 1. Asset Value =P500,000 Estimated useful life = 8 years Depreciation Amount for 2018  = (Asset…

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

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A: Sum-of-years = 1+2+3+4+5 = 15 years Depreciation rate under Diminishing-balance = 1 /life of assets…

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A: Depreciation is charged to record reduction in value of asset over the period of time.  Annual…

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A: Solution Depreciation is the reduction of the recorded cost of a fixed asset in a systematic manner…

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A: Formula:

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A: The depreciation expense can be calculated as depreciable cost divided by the useful life.

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A: The asset balance at Dec 31, 2018 can be calculated as difference of original cost and the…

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A: Depreciation can be defined as a form of expenditure which is charged on the fixed asset over its…

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A: Annual Depreciation Expense = Cost - Residual ValueUseful Life   Monthly Depreciation = Annual…

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A: Rate=1Useful life×2=17×2=28.57142857%

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A: I am answering the first three sub-parts as per company policies (1) The depreciation under straight…

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

Q: On January 1, 2014, McMahan Company purchased equipment at a cost of $420,000. The equipment was…

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A: The monetary value of an asset decreases over time due to usage, wear - and - tear, or degradation.…

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A: Activity-based method of depreciation is a type of cost allocation process where it allocates the…

Q: On October 1, 2017, Holt Company places a new asset into service. The cost of the asset is $120,000…

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

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A: The answer for the multiple choice question and relevant working are presented hereunder : Cost of…

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A: Depreciation is the accounting process of converting the original costs of fixed assets such as…

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A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…

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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: Depreciation refers to an accounting method or system of allocating the cost of a tangible or…

Q: Jefferson Company purchased equipment on January 1, 2017. The equipment cost $60,000 and has an…

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

Q: On April 1, 2016, Cyclone's Backhoe Co. purchases a trencher for $288,000. The machine is expected…

A: Solution:- Calculation of depreciation expense for both years ending December 2016 and 2017 using…

Q: each

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

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A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

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A: The right answer is option a. $15,000

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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: Revised depreciation: Typically, an adjustment to the assessed useful existence of a resource or an…

Q: The depreciation expense under the straight-line method

A: Depreciation expense under Straight line method = (Cost of asset - Salvage value) / Useful life of…

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.