Does land depriciable or not explain with proper reason suppose business purchase a machine for $12000 they have estimated useful life of the machine to 9 years salvage value of $2000 measure annual depreciation cost using straight line method
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.
Does land depriciable or not explain with proper reason suppose business purchase a machine for $12000 they have estimated useful life of the machine to 9 years salvage value of $2000 measure annual
Learn your way
Includes step-by-step video
Step by step
Solved in 3 steps with 1 images
