Hey guys,
I'm a first year accounting student and looking for some help understanding a question in an assignment.
A company purchased new fixed assets for $11,000 and had costs of $3,000 to install them and set them up. They will have a value of $2,000 at the end of two years and I am to workout out the depreciation expense using straight line and diminishing value methods.
Am I right in thinking that the depreciable value is $6,000 (cost of asset less expenses and residual value) or is it actually $9,000 (cost of asset less residual value).
Thanks in advance for any help.
I'm a first year accounting student and looking for some help understanding a question in an assignment.
A company purchased new fixed assets for $11,000 and had costs of $3,000 to install them and set them up. They will have a value of $2,000 at the end of two years and I am to workout out the depreciation expense using straight line and diminishing value methods.
Am I right in thinking that the depreciable value is $6,000 (cost of asset less expenses and residual value) or is it actually $9,000 (cost of asset less residual value).
Thanks in advance for any help.
