Review the material regarding depreciation of long-lived assets. Give an example
ID: 2378832 • Letter: R
Question
Review the material regarding depreciation of long-lived assets. Give an example of a depreciation method and an asset that would be depreciated using this method. Can you think of an asset that is not depreciated? Alternatively, discuss some of the aspects related to depreciation on a company Review the material regarding depreciation of long-lived assets. Give an example of a depreciation method and an asset that would be depreciated using this method. Can you think of an asset that is not depreciated? Alternatively, discuss some of the aspects related to depreciation on a companyExplanation / Answer
Depreciation method=Straight line method.
Asset=Machinery.
Asset that is not depreciated=Land
Depreciation is shown in the Debit side of income statement is deducted from the book value of asset.
for tax purpose depreciation is deducted from net income after that tax is calculated and the tax amount is deducted from net income .After deducting tax depreciation is added back to arrive at free cash flow..
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