Understanding Double Declining Balance Depreciation
However, before computing the gain or loss, it is necessary to record the asset’s depreciation right up to the moment of the sale. To illustrate the cost of an double declining balance method asset, assume that a company paid $10,000 to purchase used equipment located 200 miles away. Finally, the company paid $5,000 to get the equipment in working condition. The company will record the equipment in its general ledger account Equipment at the cost of $17,000. These assets are often described as depreciable assets, fixed assets, plant assets, productive assets, tangible assets, capital assets, and constructed assets. How to…
- Date: Şubat 25, 2022
- Author: kerem ilkılıç
- Category: Bookkeeping
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