ACCT 1201 Lecture Notes - Fixed Asset, Operating Expense, 6 Years
22 Mar 2013
School
Department
Course
Professor
Document Summary
Disposal, retirement and trading of ppe don"t forget to study this! Depreciation and depletion: depreciation is the process of allocating the cost of buildings and equipment over their productive lives using a systematic and rational method. We depreciate it not down to zero necessarily, but down to the salvage value. Depreciation is not a process of determining an asset"s current market value. Example: 7/1/01 zagreb corp purchases an automobile for ,000 for ,000 cash and signs a note for the balance. Zagreb paid ,000 to paint to company logo on the car. That ,000 painting cost is capitalized, making the value of the automobile ,000. Adjusting entry (12/31/01) to recognize depreciation expense based on the depreciation schedule, zagreb determines that ,000 of depreciation should be recorded relating to this automobile for the year 2010. How do you calculate the depreciation schedule: calculating depreciation. 1. three amounts are required for each depreciable asset:
