lisa Trading owns machinery that costs MYR 80,000. It is the policy of the business to charge depreciation over its useful life of 5 years. At the end of its useful life, it is estimated that its residual value is MYR 4,000. What is the depreciation charge during the year?

lisa Trading owns machinery that costs MYR 80,000. It is the policy of the business to charge depreciation over its useful life of 5 years. At the end of its useful life, it is estimated that its residual value is MYR 4,000. What is the depreciation charge during the year?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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Question

Alisa Trading owns machinery that costs MYR 80,000. It is the policy of the business to charge depreciation over its useful life of 5 years. At the end of its useful life, it is estimated that its residual value is MYR 4,000. What is the depreciation charge during the year?

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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