Tamarisk Company purchased a computer for $9,280 on January 1, 2019. Straight-line depreciation is used, based on a 5-year life and a $1,160 salvage value. On January 1, 2021, the estimates are revised. Tamarisk now feels the computer will be used until December 31, 2022, when it can be sold for $580. Compute the 2021 depreciation. (Round answer to 0 decimal places, eg. 45,892.) Depreciation expense, 2021 24
Tamarisk Company purchased a computer for $9,280 on January 1, 2019. Straight-line depreciation is used, based on a 5-year life and a $1,160 salvage value. On January 1, 2021, the estimates are revised. Tamarisk now feels the computer will be used until December 31, 2022, when it can be sold for $580. Compute the 2021 depreciation. (Round answer to 0 decimal places, eg. 45,892.) Depreciation expense, 2021 24
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...
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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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