• What is depreciation and the method?
- 1 Answers
- 3426 Views
- Bank of New York, I also Faced
- E-Mail Answers
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 are the various sources through which a company can meets its fund requirements?
How will you define public expenditure?
What is IISC Code?
Define the terms- underwriting, sales, agent.
What Are Npas?
What is the difference between cheque and demand draft
What Is Checking Account?
What do you know about "pradhan mantri jan dhan yojana"?
What is Issued Capital?
When Shares Are Allotted to Shareholders at Par What Entry Will Be Passed?
Why are the recent changes in the banking industry?
What Is The Role Of The National Supervisors?
Why banks are nationalised?
What are some of the most significant deals this bank has completed in the last 12 months?
What are your views on demonetization?
