A television company purchased machinery for P140,000 on July 1, 1979. It is estimated it will have a useful life of 25 years. scrap value of P10,000, production of 50,000 units and working hours of 120,000. The company uses the machinery for 20,000 hours in 1979 and 25,000 hours in 1980. The machinery produces 46,000 units in 1979 and 55,000 units in 1980. Compute the depreciation using A. Output method B. Working hour
A television company purchased machinery for P140,000 on July 1, 1979. It is estimated it will have a useful life of 25 years. scrap value of P10,000, production of 50,000 units and working hours of 120,000. The company uses the machinery for 20,000 hours in 1979 and 25,000 hours in 1980. The machinery produces 46,000 units in 1979 and 55,000 units in 1980. Compute the depreciation using A. Output method B. Working hour
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 1RE: Susquehanna Company purchased an asset at the beginning of the current year for 250,000. The...
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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A television company purchased machinery for P140,000 on July 1, 1979. It is estimated it will have a useful life of 25 years. scrap value of P10,000, production of 50,000 units and working hours of 120,000. The company uses the machinery for 20,000 hours in 1979 and 25,000 hours in 1980. The machinery produces 46,000 units in 1979 and 55,000 units in 1980. Compute the depreciation using
A. Output method
B. Working hours
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