Depreciation And Sale Of Asset
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Depreciation is the decline in the future economic benefits of a depreciable non-current asset through wear and tear and obsolescence. It is an allocation process. It can be calculated by two main methods, each reflecting in a distinct prospect in the way the asset is used. Depreciation is to be ....
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.... expenses as their future economic benefits are used up or expired. Examples of depreciable assets include machinery and motor vehicles.
Generally, most non-current assets, with the exception of land, decline in their potential to provide future economic benefit. There are three factors that contribute to this decline. They are, the deterioration of a non-current asset due to the use of it, technical obsolescence, whereby certain assets become out of date due to technical innovations and imp ....
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Word count: 962
Page count: 4 (approximately 250 words per page)
