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What else can I help you with?
A change in the estimated useful life of equipment requires?
that the amount of periodic depreciation be changed in the current year and in future years.
Why depreciation is not same amount each year?
why depreciation is not same amount each year?
Is depreciation a credit or debit entry?
"Depreciation Expense" is a Debit entry and the counter entry is "accumulated depreciation" on an asset which is a credit entry. Depreciation - DR. Amount X Acc. Depreciation - CR. Amount X
What is the overhead component of product cost?
an estimated amount based on labor hours, machine hours, or some other activity.
Straight line method of depreciation?
Straight line depreciation method is that method in which fixed amount of depreciation is charged to all fiscal years in which that asset is used.
What is the amount of depreciation using the double declinging method for the second year of use for equipment costing 9000 with an estimated residual value of 600 and as estimated life of three year?
Depreciation for 1st year = 6000 Depreciation for 2nd year = 2000 Depreciation for 3rd year = 400
What does the residual value or a point tell you?
The residual value, or a point, in finance typically refers to the estimated salvage value of an asset at the end of its useful life. It represents the amount expected to be recovered from the asset after depreciation has been accounted for. This value is crucial for determining depreciation expenses and assessing the overall financial viability of an investment. A higher residual value can enhance the return on investment and influence decisions related to asset acquisition and management.
How do you find profit and loss in sell of any machine in depreciation?
Your question was, if I'm not mistaken,How do you find whether or not you made a profit or loss when you sell your machine?To do this, you need to have a couple of figures.- Cost of the machine- Accumulated depreciation- Sell price- Residual value (how much the machine would be worth after it's fully depreciated, if you are selling at this time)Imagine:Machine cost $10000Accumulated Depreciation $4000Sold for $15000Step 1: Record sale of machineDr Cash at bank $15 000Cr Proceeds from sale of machine $15 000(To record proceeds from sale of machine)Step 2: Record disposal of machineDr Carrying Amount* $6 000Dr Accumulated depreciation $4 000Cr Machine $10 000(To recognise carrying amount as an expense, and a gain of $5 000 on sale of machine)As you can see, machine's carrying amount was $6 000 and you sold it for $15 000, you have made $9 000 gain.*Carrying amount = Cost of machine - Accumulated depr= $10 000 - $4 000= $6 000
Is depreciation cost relevant in Outsourcing?
Only the total amount of a new machine is a relevant cost because this incurs in the future and incurs when a certain decision is made. The depreciation of old machines is a sunk cost so this is an unavoidable cost. The amount for the old machine you sell is a relevant cost because you will get this amount if you sell the old machine and buy the new one.
A change in the estimated useful life of equipment requires?
that the amount of periodic depreciation be changed in the current year and in future years.
Why depreciation is not same amount each year?
why depreciation is not same amount each year?
Is depreciation a credit or debit entry?
"Depreciation Expense" is a Debit entry and the counter entry is "accumulated depreciation" on an asset which is a credit entry. Depreciation - DR. Amount X Acc. Depreciation - CR. Amount X
What is the amount of the annual depreciation computed by the straight-line method for a refrigerator used by a meat processor that cost 198500 and estimated value of 30500 with a useful life of 15yrs?
The annual depreciation for the refrigerator using the straight-line method would be calculated as follows: (Cost of the refrigerator - Estimated salvage value) / Useful life = ($198,500 - $30,500) / 15 years = $168,000 / 15 years = $11,200 per year.
Is Depreciation amount differs in leap years?
No.
What is the estimated salvage value of a fixed asset?
1. Estimated salvage value is the amount which is expected to be received from disposal of fully depreciated asset after useful life of asset.
What is the overhead component of product cost?
an estimated amount based on labor hours, machine hours, or some other activity.
Straight line method of depreciation?
Straight line depreciation method is that method in which fixed amount of depreciation is charged to all fiscal years in which that asset is used.
