Equipment for immersion cooling of electronic components has an installed value of $188,000 with an estimated trade-in value of $39,000 after 15 years. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. For years 2 and 10, use DDB book depreciation to determine the depreciation by equations. The depreciation in the second year is $ . The depreciation in the tenth year is $ .
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.
Equipment for immersion cooling of electronic components has an installed value of $188,000 with an estimated trade-in value of $39,000 after 15 years.
NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part.
For years 2 and 10, use DDB book
The depreciation in the second year is $ .
The depreciation in the tenth year is $ .
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