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The difference between the cost of an asset and the accumulated depreciation for that asset is called?
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∙ 9y ago
Book Value is the difference between the cost of an asset and the accumulated depreciation of that asset.
Wiki User
∙ 9y ago
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Does accumulated depreciation have a natural debt or credit balance?
Accumulated Depreciation normally has a credit balance and because it is shown on the asset (ie debit) side of the Balance Sheet, it is called a "contra-account"
Do you have to use the same depreciation for accounting and tax?
Tax department has developed theire own depreciation schedules for different assets class and use their own depreciations rather than using accounting depreciation and due to this accounting depreciation difference there is also difference in tax we pay and tax we calculate and called "Deffered Taxation"
Depreciation is called as notional cost why and explain?
Depreciation is called a notional cost because it cannot be measured in real terms.
What is it called when an asset loses value?
Depreciation
The difference between actual and standard cost caused by the difference between the actual quantity and the standard quantity is called the?
The difference between actual quantity and standard quantity is called the material quantity variance.
What type of account is accumulated depreciation and how is it reported in the financial statements?
Accumulated depreciation is a contra-asset account and show in the asset section of the Balance Sheet. It is called contra-asset account because contrary to any asset account Acc. Dep. is a credit type of account. The offset of Accumulated depreciation is to Debit the expense account Depreciation.
Does accumulated depreciation have a natural debt or credit balance?
Accumulated Depreciation normally has a credit balance and because it is shown on the asset (ie debit) side of the Balance Sheet, it is called a "contra-account"
What is the difference between the valur of a car when it is new and the lesser value after ownership is called?
The difference between the value of a car when it is new and its reduced value after ownership is commonly referred to as "depreciation." Depreciation represents the decline in the car's market value over time due to factors such as wear and tear, age, and usage. This reduction in value occurs gradually, impacting the resale or trade-in value of the vehicle.
Do you have to use the same depreciation for accounting and tax?
Tax department has developed theire own depreciation schedules for different assets class and use their own depreciations rather than using accounting depreciation and due to this accounting depreciation difference there is also difference in tax we pay and tax we calculate and called "Deffered Taxation"
When is depreciation on a revaluation reserve realized?
Total http://www.answers.com/topic/depreciation charged against all productive Assets as stated on the http://www.answers.com/topic/balance-sheet; also called accumulated depreciation. The charge is made to allow realistic reduction in the value of productive assets and to allow tax-free http://www.answers.com/topic/recovery of the original investment in assets.
Machinery sold what is the accumulated depreciation?
All equipment owned by a business should be listed on the corporation's income tax return each year. This page of the report is called the Depreciation Schedule. Each year the taxpayer should report any new equipment purchased and also tell his accountant which items of equipment were sold or disposed of by the owner. The corporation's accountant increases the depreciation each year to offset income and thereby reduce taxes. The depreciation amount taken each year is usually higher than the actual physical depreciation occurring due to weather and use. To determine the accumulated depreciation on a piece of equipment, look at the last tax return available to see what the number is on the Depreciation Schedule. The actual value of the equipment sold will be higher than the Purchase Price New minus the Accumulated Depreciation. A good rule of thumb would be to add back 1/2 of the accumulated depreciation to get a ball-park idea of the fair market value. Better yet - have the equipment appraised by a Certified Machinery & Equipment Appraiser (CMEA). For more information on this subject, go to www.nebbinstitute.org. An interesting and helpful article on farm equipment that discusses depreciation, recaptured depreciation and capital gains tax related to the sale of equipment can be found at www.extension.iastate.edu/Publications/PM1450.pdf. Paul Klinge, CBI, CBC, CSBA The Lincoln Group, Inc. Waverly, Iowa 319-352-0132 Business Transfer Specialists Mergers & Acquisitions Business Valuations Machinery & Equipment Appraisals
Depreciation is called as notional cost why and explain?
Depreciation is called a notional cost because it cannot be measured in real terms.
Is there a depreciation chart that National Flood Insurance Program uses for personal property depreciation?
It is called (JOINT MILITARY/INDUSTRY DEPRECIATION GUIDE)
What is it called when an asset loses value?
Depreciation
The difference between actual and standard cost caused by the difference between the actual quantity and the standard quantity is called the?
The difference between actual quantity and standard quantity is called the material quantity variance.
When combined together accumulated patches are called?
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What are accumulated patches called when combined together?
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