Copy equipment was acquired at the beginning of the year at a cost of $37,120 that has an estimated residual value of $3,400 and an estimated useful life of 5 years. It is estimated that the machine will output an estimated 1,124,000 copies. This year, 295,000 copies were made. a. Determine the depreciable cost. %$4 b. Determine the depreciation rate. Round your answer to two decimal places. %$4 per copy c. Determine the units-of-output depreciation for the year.
Copy equipment was acquired at the beginning of the year at a cost of $37,120 that has an estimated residual value of $3,400 and an estimated useful life of 5 years. It is estimated that the machine will output an estimated 1,124,000 copies. This year, 295,000 copies were made. a. Determine the depreciable cost. %$4 b. Determine the depreciation rate. Round your answer to two decimal places. %$4 per copy c. Determine the units-of-output depreciation for the year.
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter9: Depreciation (deprec)
Section: Chapter Questions
Problem 5R: A truck was recently purchased for 75,000 with a salvage value of 5,000 and an estimated useful life...
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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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