Depreciation
Depreciation
A variety of depreciation methods are used to allocate the cost of an asset to all of the accounting periods benefited by the use of the asset. Your client has just purchased a piece of equipment for $100,000. Explain the concept of depreciation. Which of the following depreciation methods would you recommend: straight-line depreciation, double declining balance method, or an alternative method?
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Depreciation is the reduction in economic value of an asset over time. In accounting, depreciation is a method of allocating costs to the period in which the assets have been used. Depreciation is expected to reflect the actual usage of the underlying asset such that the carrying amount is significantly reduced over the entire useful life (Damodaran, 2012). The depreciation cost is treated as an expense in the statement of comprehensive income (Rich, 2009). There are………………….
APA 546 words