Bridgeport Company purchased a new machine on October 1, 2022, at a cost of $110,500. The company estimated that the machine will have a salvage value of $10,500. The machine is expected to be used for 10,000 working hours during its 4-year life. (a) Your answer is correct. Compute the depreciation expense under straight-line method for 2022. Depreciation expense 2022 6.250
Bridgeport Company purchased a new machine on October 1, 2022, at a cost of $110,500. The company estimated that the machine will have a salvage value of $10,500. The machine is expected to be used for 10,000 working hours during its 4-year life. (a) Your answer is correct. Compute the depreciation expense under straight-line method for 2022. Depreciation expense 2022 6.250
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 6CE
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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.
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