A sand mixing device costs $48,000. At the end of 5 years, the salvage value is $18,000. Using straight-line depreciation, find out the how much is accumulated depreciation over the 5-year life of the machine? O A. $35000 O B. $30000 O. $37000
A sand mixing device costs $48,000. At the end of 5 years, the salvage value is $18,000. Using straight-line depreciation, find out the how much is accumulated depreciation over the 5-year life of the machine? O A. $35000 O B. $30000 O. $37000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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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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A sand mixing device costs $48,000. At the end of 5 years, the salvage value is $18,000. Using straight-line depreciation,
find out the how much is accumulated depreciation over the 5-year life of the machine?
sut of
O A. $35000
uestion
O B. $30000
OC. $37000
13
A company bought a machine for BD 250,000 which has a useful life of 10 years and can be sold for BD50,000 at the end of
its useful life. Determine the depreciation on the 8th year and book value at the end of 8th year using sinking fund if interest is
12%.
ut of
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