Beluga tap industries has started to produce taps with different sizes and it has high level of quality in the market for which it purchased a manufacturing machine which costs 240,000 with residual amount of 18,600. Its useful life is 12 years and it has followed straight line depreciation. Find annual and book value at the end of 10th year. depreciation
Beluga tap industries has started to produce taps with different sizes and it has high level of quality in the market for which it purchased a manufacturing machine which costs 240,000 with residual amount of 18,600. Its useful life is 12 years and it has followed straight line depreciation. Find annual and book value at the end of 10th year. depreciation
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 8PB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...
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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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