Explain and calculate depreciation for plant and equipment.

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The Answer is Depreciation is the process of allocating the cost of a long-lived asset over the asset's useful (service) life in a systematic way. There are three commonly used depreciation methods: straight-line, diminishing-balance, and units-of-production. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5535/11eb231d_aa9c_f99e_bc8b_539e29225465_TB5535_00.jpg" alt="Depreciation is the process of allocating the cost of a long-lived asset over the asset's useful (service) life in a systematic way. There are three commonly used depreciation methods: straight-line, diminishing-balance, and units-of-production.   Other accounting issues related to depreciation include (1) identifying significant components of a long-lived asset for which different depreciation methods or rates may be appropriate; (2) capital cost allowance (CCA) used for income tax purposes; (3) testing long-lived assets for impairment; (4) accounting for property, plant, and equipment using the cost or revaluation model; and (5) circumstances under which a revision of depreciation is required." class="answers-bank-image d-block" rel="preload" > Other accounting issues related to depreciation include (1) identifying significant components of a long-lived asset for which different depreciation methods or rates may be appropriate; (2) capital cost allowance (CCA) used for income tax purposes; (3) testing long-lived assets for impairment; (4) accounting for property, plant, and equipment using the cost or revaluation model; and (5) circumstances under which a revision of depreciation is required.

Explain and Calculate Depreciation for Plant and Equipment