Calculate the total cost, total depreciation, and annual depreciation (in $) for the following assets by using the straight-line method. (Round your answers to the nearest cent.) Cost Shipping Charges Setup Charges Total Cost Salvage Value Estimated Useful Life (years) Total Depreciation Annual Depreciation $76,300 $1,500 $650 $ $4,500 11 $ $
Calculate the total cost, total depreciation, and annual depreciation (in $) for the following assets by using the straight-line method. (Round your answers to the nearest cent.) Cost Shipping Charges Setup Charges Total Cost Salvage Value Estimated Useful Life (years) Total Depreciation Annual Depreciation $76,300 $1,500 $650 $ $4,500 11 $ $
Chapter1: Financial Statements And Business Decisions
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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Calculate the total cost, total depreciation , and annual depreciation (in $) for the following assets by using the straight-line method. (Round your answers to the nearest cent.)
| Cost | Shipping Charges |
Setup Charges |
Total Cost |
Salvage Value |
Estimated Useful Life (years) |
Total Depreciation |
Annual Depreciation |
|---|---|---|---|---|---|---|---|
| $76,300 | $1,500 | $650 | $ | $4,500 | 11 | $ | $ |
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