Question 1 Describe the difference between depreciation and depletion.Outline the accounting entries required when plant assets are disposed by a company.

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Describe the difference between depreciation and depletion.

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section19.2: Calculating Depreciation Expense

Problem 1AYU

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Question 1

Describe the difference between depreciation and depletion.
Outline the accounting entries required when plant assets are disposed by a company.

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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