The following accounts are extracted from the books of X Inc. on December 31, 2020: Accot Receivble Accs Payabe 75.000 Accumulated Dopreciation: Land mprvemnt Allowance for Duheul Accots 26000 Accruod Lihiles 20400 Bond Payable Bond Siking Fnd 2000 1400 evestment in Stk Commn Stk 41400 Geodwill lavetry 00022 Land Land held for spooltie Land pm 0.000 Mtge Peyae 16000 Pomim end Payae Promim on Commen Stk 26000 Pepaid lumoe (24 m) Reined ings 40.00 Supplies 6.000 Trading Soourities, originally purchanod a S0, we dedafairval of S0 Trery Stck Uncamed Senvie Reven Based on the data above, current assets were: O $582,000 O $600,000 $626,000 O None of the above
The following accounts are extracted from the books of X Inc. on December 31, 2020: Accot Receivble Accs Payabe 75.000 Accumulated Dopreciation: Land mprvemnt Allowance for Duheul Accots 26000 Accruod Lihiles 20400 Bond Payable Bond Siking Fnd 2000 1400 evestment in Stk Commn Stk 41400 Geodwill lavetry 00022 Land Land held for spooltie Land pm 0.000 Mtge Peyae 16000 Pomim end Payae Promim on Commen Stk 26000 Pepaid lumoe (24 m) Reined ings 40.00 Supplies 6.000 Trading Soourities, originally purchanod a S0, we dedafairval of S0 Trery Stck Uncamed Senvie Reven Based on the data above, current assets were: O $582,000 O $600,000 $626,000 O None of the above
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
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
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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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