• What is depreciation and the method?
Answer Posted / shashi sharma
Straight line depreciation]
On April 1, 2011, Company A purchased an equipment at
the cost of $140,000. This equipment is estimated to have 5
year useful life. At the end of the 5th year, the salvage
value (residual value) will be $20,000. Company A
recognizes depreciation to the nearest whole month.
Calculate the depreciation expenses for 2011, 2012 and 2013
using straight line depreciation method.
Depreciation for 2011
= ($140,000 - $20,000) x 1/5 x 9/12 = $18,000
Depreciation for 2012
= ($140,000 - $20,000) x 1/5 x 12/12 = $24,000
Depreciation for 2013
= ($140,000 - $20,000) x 1/5 x 12/12 = $24,000
Is This Answer Correct ? | 11 Yes | 3 No |
Post New Answer View All Answers
What is NABARD and its functions?
A nationalized bank is also called as?
Define GDP? What is the current GDP rate in the economy?
What do you know about CTS?
What is a term loan agreement? What are its various clauses?
What are the limitations of financial statements?
How can the inflation be measured?
Do you know what giffen goods are?
Electronics has given technologies to bank. What are they? Explain?
What is 'interest tax'?
How do you deal with different stakeholders?
what is your core comtetence
Differentiate between micro credit and micro finance?
Name the highest civilian award in India?
Where Does Revenue Received In Advance Go On A Balance Sheet?