The following balances were taken from the books of Nash Corp. on December 31, 2025. Interest revenue $87,050 Accumulated depreciation-equipment $41,050 Cash 52,050 Accumulated depreciation-buildings 29,050 Sales revenue 1,381,050 Notes receivable 156,050 Accounts receivable 151,050 Selling expenses 195,050 Prepaid insurance 21,050 Accounts payable 171,050 Sales returns and allowances 151,050 Bonds payable 101,050 Allowance for doubtful accounts 8,050 Administrative and general expenses 98,050 Sales discounts 46,050 Accrued liabilities 33,050 Land 101,050 Interest expense W 61,050 Equipment 201,050 Notes payable 101,050 Buildings 141,050 Loss from earthquake damage 151,050 Cost of goods sold 622,050 Common stock 501,050 Retained earnings 22,050

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…