Depreciation
show work please
If the cost of an asset = $100,000
and in the first year that the asset was used, depreciation on the asset taken was $25000, What is the accumulated depreciation on the asset and what is its net book value??
What makes depreciation unique from other expenses on the income statement?
Accumulated depreciation = $25,000
Net book value = $100,000 - $25,000
Net book value = $75,000
Depreciation on income statement is NON CASH expense. Unlike fixed or material costs, there is no actual money going out for depreciation. To calculate free cash flow using income statement, we always add back depreciation since there is no actual cash being paid out.
Depreciation show work please If the cost of an asset = $100,000 and in the first...
depreciation If the cost of an asset = $100,000 and in the first year that the asset was used, depreciation on the asset taken was $25000, What is the accumulated depreciation on the asset and what is its net book value?? What makes depreciation unique from other expenses on the income statement?
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