What is the Depreciation and its rate on Furniture and fixture? Method of Charged Dep.

Question

Accepted Answer

Depreciation is the decrease in value of an asset over time. Furniture and fixture have a depreciation rate and method of charged depreciation.

Depreciation is a non-cash expense that reflects the wear and tear of an asset over time
Furniture and fixture have a useful life and a salvage value
The most common method of charged depreciation is the straight-line method
The depreciation rate and method of charged depreciation may vary depending on the company's accounting policies and tax laws
Example: If a company purchases furniture and fixture for $10,000 with a useful life of 10 years and a salvage value of $1,000, the annual depreciation expense would be $900 using the straight-line method

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