ABC Company uses double declining balance deprecistion method. The compury purchused machinery on January 1.2020 at a total cost of$32000. The machinery was ectimated to have a senisual nitue of$4000and an estimated useful life of 8 years What is depreciation expense of the machinery for the year of 2021 ? Select one: a.$6,000b.$7,000c.$6,250d.$8,000
ABC Company uses double declining balance deprecistion method. The compury purchused machinery on January 1.2020 at a total cost of$32000. The machinery was ectimated to have a senisual nitue of$4000and an estimated useful life of 8 years What is depreciation expense of the machinery for the year of 2021 ? Select one: a.$6,000b.$7,000c.$6,250d.$8,000
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 9MCQ: Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a...
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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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ABC Company uses double declining balance deprecistion method. The compury purchused machinery on January 1.2020 at a total cost of$32000. The machinery was ectimated to have a senisual nitue of$4000and an estimated useful life of 8 years What is depreciation expense of the machinery for the year of 2021 ? Select one: a.$6,000b.$7,000c.$6,250d.$8,000Clearmy choice
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ABC Company uses double declining balance depreciation method. The company purchased machinery on
January 1, 2020 at a total cost of $32,000. The machinery was estimated to have a residual value of $4,000 and
an estimated useful life of 8 years
What is depreciation expense of the machinery for the year of 20217
Select one:
a $6,000
b.$7,000
c.$6,250
d.$8,000
Clear my choice
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