Asked by theresa betty on May 04, 2024
Verified
The depreciable amount of property, plant, and equipment is its original cost minus the depreciation for the current year.
Depreciable Amount
The total cost of a tangible fixed asset minus its expected residual value at the end of its useful life.
- Comprehend different depreciation methods and their impact on financial statements.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
False
Explanation :
The depreciable amount of property, plant, and equipment is its original cost minus its residual value, not just the depreciation for the current year. Depreciation for the current year is part of the calculation of the annual depreciation expense.
Learning Objectives
- Comprehend different depreciation methods and their impact on financial statements.
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