On 1 January 20X1 a business purchased a laser printer costing $1,800. The printer has an estimated life of 4 years after which it will have no residual value. 6 Calculate the depreciation charge for 20X2 on the laser printer on the straight line basis:
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.
On 1 January 20X1 a business purchased a laser printer costing $1,800. The printer has an estimated life of 4 years
after which it will have no residual value.
6 Calculate the
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