Here are selected 2027 transactions of Swifty Corporation. Jan. 1 June 30 Dec. 31 Retired a piece of machinery that was purchased on January 1, 2017. The machine cost $61,300 and had a useful life of 10 years with no salvage value. Sold a computer that was purchased on January 1, 2025. The computer cost $35,200 and had a useful life of 4 years with no salvage value. The computer was sold for $5,700 cash. Sold a delivery truck for $9,500 cash. The truck cost $23,000 when it was purchased on January 1, 2024, and was depreciated based on a 5-year useful life with a $4,000 salvage value.

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 exp…

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…