1.Reta corporation purchased a machine for 50,000. Useful life=10 years Residual value=2,000 Find out the amount of depreciation under Straight line deprecition method. Also find the rate of depreciation? 2.State any two advantages of Straight line deprecition method?
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.
1.Reta corporation purchased a machine for 50,000.
Useful life=10 years
Residual value=2,000
Find out the amount of
Also find the rate of depreciation?
2.State any two advantages of Straight line deprecition method?
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