Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 9 - Reporting and Analyzing Long-Lived Assets - Questions: 10

Answer

(a) In the fourth year of assets useful life, the balance of accumulated depreciation and the cost of asset will give the net book value of the asset.

Work Step by Step

This net value is divided by the number of year's useful life, as amended, to get the depreciation expense per year. This revised depreciation expense will be charged every year.
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