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Depreciable asset - accumulated depraecation = net of Depreciable asset (PPE) Which is the reported PPE(net)
In urban area, land has its appreciation value. But while preparing Balance Sheet for a company, depreciation is allowed on land and building, being fixed asset.
Depreciable Value: It is the value of asset up to which any asset can be depreciated. Salvage Value: It is the value which a company can get on sale of fully depreciated asset. Estimated useful Life: It is that life of an assets which a company determine at the time of purchase for which an asset can be utilized in business to generate revenue.
The answer to this question depends on the value of the depreciable assets the company has, the useful lives of the assets, and the depreciation methods used. When a firm owns many depreciable assets, depreciation expense will be higher. The longer the useful lives of the assets, the less the depreciation expense will be per period because the expense is being allocated over a longer period of time. The depreciation method also has a huge impact. If the straight-line method is used, then the expense will be constant each period. If another method such as double-declining balance is used, higher depreciation will occur during the beginning of the life of the asset. All of these factors affect the balance of the depreciation expense account.
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Charles William Lamden has written: 'Accounting for depreciable assets' -- subject(s): Accounting, Depreciation
Depreciation is always charged on the depreciable assets only.... books and teachers are teaching wrong actually.. that.. depreciation is charged on fixed assets.... but it is not true....Depreciation is always charged on fixed tangible assets which are depreciable...Assets which decrease their value because of their use, accident etc..for example, plant, machinery, motor vehicles etc...Clear all your accountancy doubts... use... "ULTIMATE BOOK OF ACCOUNTANCY"published by vishvas publications
Depreciable Value = Intial Cost - Residual Value
Depreciable asset - accumulated depraecation = net of Depreciable asset (PPE) Which is the reported PPE(net)
In urban area, land has its appreciation value. But while preparing Balance Sheet for a company, depreciation is allowed on land and building, being fixed asset.
Depreciable Value: It is the value of asset up to which any asset can be depreciated. Salvage Value: It is the value which a company can get on sale of fully depreciated asset. Estimated useful Life: It is that life of an assets which a company determine at the time of purchase for which an asset can be utilized in business to generate revenue.
The answer to this question depends on the value of the depreciable assets the company has, the useful lives of the assets, and the depreciation methods used. When a firm owns many depreciable assets, depreciation expense will be higher. The longer the useful lives of the assets, the less the depreciation expense will be per period because the expense is being allocated over a longer period of time. The depreciation method also has a huge impact. If the straight-line method is used, then the expense will be constant each period. If another method such as double-declining balance is used, higher depreciation will occur during the beginning of the life of the asset. All of these factors affect the balance of the depreciation expense account.
no.
Short term loans are good for non-regular expenses that come up. Long term loans are good for equipment and other depreciable assets.
In the US, the answer depends on what depreciable assets you are talking about.Depreciation on any depreciable asset that is directlyused in the production of goods is part of Manufacturing Overhead, and therefore is a product cost, which is included in the calculation of the value of both inventory and cost of goods sold. So, depreciation on a factory building and factory equipment directly used to manufacture a product are both product costs.Conversely, depreciation on equipment that is NOTdirectly used in production (e.g., depreciation on office computer equipment) is NOT a product cost.
true