On June 30, 2014, Mill Company incurred a PI,000,000 net loss from disposal of a business segment. Also, on June 30,2014, the entity paid P400,000 for property taxes assessed for the calendar year 2014. What total amount should be included in the determination of the net income or loss for the six-month interim period ended June 30,2014?
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.
On June 30, 2014, Mill Company incurred a PI,000,000 net loss from disposal of a business segment. Also, on June 30,2014, the entity paid P400,000 for property taxes assessed for the calendar year 2014. What total amount should be included in the determination of the net income or loss for the six-month interim period ended June 30,2014?
Step by step
Solved in 2 steps
