Seattle breweries has gross fixed assets of $2000000 and accumulated depreciation of $750000
Answers
Answer:
$2000000 - $750000 = $1250000
Gross fixed assets - accumulated depreciation = Net fixed assets
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Answer: $1250000
Explanation:
$2000000 - $750000 = $1250000
Net fixed assets are equal to Gross fixed assets less Accumulated Depreciation.
Depreciation that has accrued since a fixed asset was purchased and made available for use is known as accumulated depreciation.
The goal is to roughly match the asset's cost over its useful life with the income or other advantages it produces (known as the matching principle).
As depreciation is continued to be charged against an asset, the amount of accumulated depreciation for that asset will rise over time.
The gross cost of an asset is referred to as its original cost, and the net cost, also known as the carrying amount, is the initial cost of the asset less the total amount of accrued depreciation and any impairment charges.
The computation of an asset's net book value includes accumulated depreciation.
Subtract the asset's initial purchase price from the total depreciation and any impairment charges to arrive at the asset's net book value.
The asset's net book value is represented by the residual balance.
For instance, a $1,000.00 asset is purchased.
The corporation records a $200,000 asset impairment charge against the asset after three years.
At that time, the asset has $300,000 in accumulated depreciation.
Accordingly, the asset has a net book value of $500,000 ($1,000,000 acquisition price minus $200,000 in impairment charges minus $300,000 in cumulative depreciation).
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