The cost and estimated useful life of accounts under Property, Plant and Equipment of FDNACCT Co. are as follows: Office Equipment P260,000 Delivery Vehicle P660,000 5 years 5 years All assets were bought on January 1. No salvage value was available. How much should be the carrying amount of Property, Plant and Equipment?
The cost and estimated useful life of accounts under Property, Plant and Equipment of FDNACCT Co. are as follows: Office Equipment P260,000 Delivery Vehicle P660,000 5 years 5 years All assets were bought on January 1. No salvage value was available. How much should be the carrying amount of Property, Plant and Equipment?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 3MCQ: When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash...
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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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Transcribed Image Text:The cost and estimated useful life of accounts under Property, Plant and
Equipment of FDNACCT Co. are as follows:
Office Equipment
P260,000
Delivery Vehicle
P660,000
5 years
5 years
All assets were bought on January 1. No salvage value was available. How
much should be the carrying amount of Property, Plant and Equipment?
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