Asked by Takerrah Young on May 16, 2024
Verified
A company's property records revealed the following information about one of its plant assets:
Calculate the depreciation expense for the asset in Year 1 and Year 2 for the year ended December 31.
Depreciation Expense
A charge that reflects the cost of using fixed assets over their useful life.
Plant Assets
Durable assets with physical form, employed in running a company and not meant for resale.
Year Ended
The conclusion of a 12-month accounting period, at which financial statements are prepared.
- Gain proficiency in determining the depreciation expense utilizing several approaches such as straight-line, double-declining balance, and units-of-production.
Verified Answer
CR
Carlos R Zarate AparicioMay 16, 2024
Final Answer :
Year 1 [($450,000 - $30,000)/7] *3/12 = $15,000
Year 2 ($450,000 - $30,000)/7 = $60,000
Year 2 ($450,000 - $30,000)/7 = $60,000
Learning Objectives
- Gain proficiency in determining the depreciation expense utilizing several approaches such as straight-line, double-declining balance, and units-of-production.
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