question archive At the end of 2020, the company purchased a machinery at the price of 2
At the end of 2020, the company purchased a machinery at the price of 2
Subject:AccountingPrice:2.84 Bought3
At the end of 2020, the company purchased a machinery at the price of 2.700 lei, transportation 300 lei. The useful life of machinery is 3 years, and the company use the straight line depreciation method. The formula for annual depreciation is:
Accumulated depreciation of machinery = Depreciation expense 900
Accumulated depreciation of machinery = Depreciation expense 1.000
Depreciation expense = Accumulated depreciation of machinery 1.000
Depreciation expense = Accumulated depreciation of machinery 900
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Answer: Option b is correct i.e.,Accumulated depreciation of machinery = Depreciation expense 1.000
Explanation:
Annual depreciation under straight line methos = (cost of asset - salvage value) / useful life
= (2700+300-0) / 3
= 1000
