Note:- not use of excel and solve correctly.Last time incorrect solution given Q) determine the change in profit, when a contractor makes a payment on a loader that he bought with a loan last year. The amount of the payment is $ 4,100, which includes $ 1,500 in principal and $ 600 in interest. At the same time the contractor records a depreciation in the loader value of $ 1,100, and at the same time the contractor sold a truck for $ 90,000 in cash. The truck was purchased for $ 200,000 and $ 100,000 of depreciation has been taken
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.
Note:-
not use of excel and solve correctly.Last time incorrect solution given
Q) determine the change in profit, when a contractor makes a payment on a loader that he bought with a loan last year. The amount of the payment is $ 4,100, which includes $ 1,500 in principal and $ 600 in interest. At the same time the contractor records a
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