How much should be the depreciation of leasehold Improvements for 2023? a. 241,000 b. 288,000 c. 320,000 d. 400,000
How much should be the depreciation of leasehold Improvements for 2023? a. 241,000 b. 288,000 c. 320,000 d. 400,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...
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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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On January 1,2022, Uranus Company leased land and building from an unrelated lessor for a 10 - year term. The lease has a renewal option for an additional 10 years, but Uranus has hot reached a decision with regard to the renewal option. In early January of 2023, Uranus completed the following improvements to the property:
Description Estimated Life Cost
Parking lot 5 years P 900,000
Warehouse 15 years 1,620,000
Sales office 10 years 360,000
How much should be thedepreciation of leasehold Improvements for 2023?
Description Estimated Life Cost
Parking lot 5 years P 900,000
Warehouse 15 years 1,620,000
Sales office 10 years 360,000
How much should be the
a. 241,000
b. 288,000
c. 320,000
d. 400,000
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