Depreciation : Depreciation refers to the reduced 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. The following is the formula to calculate the depreciation. Depreciation cost = Cost of the asset-Salvage value Estimated useful life of the asset To respond: to the president about the treatment of depreciation

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Chapter 9, Problem 6Q

To determine

Depreciation: Depreciation refers to the reduced 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. The following is the formula to calculate the depreciation.

Depreciation cost = Cost of the asset-Salvage valueEstimated useful life of the asset

To respond: to the president about the treatment of depreciation

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