The rate of depreciation of a building is given by D'(t) = 3000(10 – t) dollars per year, 0sts 10; see the following figure. D'(t) 30 000 25 000 20 000 15 000 10 000 5000 4 10 ® 8 (a) Use the graph to find the total depreciation of the building over the first 5 years (t = 0 tot = 5). (b) Use the definite integral to find the total depreciation over the first 5 years. 2.
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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