For some of the fixed assets of a business, the balance in Accumulated Depreciation is equal to the cost of the asset. (a) Is it permissible torecord additional depreciation on the assets if they are still useful to the business? Explain. (b) When should an entry be made to remove thecost and the accumulated depreciation from the accounts?

Question
Asked Dec 17, 2019
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For some of the fixed assets of a business, the balance in Accumulated Depreciation is equal to the cost of the asset. (a) Is it permissible to
record additional depreciation on the assets if they are still useful to the business? Explain. (b) When should an entry be made to remove the
cost and the accumulated depreciation from the accounts?

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Expert Answer

Step 1

Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its wear and tear or obsolescence. It is a method of distributing the cost of the fixed assets over its estimated useful life.

Step 2

a.

Explain whether it is permissible to record additional depreciation on the assets if they are still useful in the business:

No, it is not permissible to record additional depreciation on the assets if they are still useful in the business.

Explanation:

The accumulated depreciation should not exceed the...

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