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amortization and depreciation question
03-27-2010, 05:03 AM,
 snyk8122 Junior Member Posts: 4 Threads: 3 Joined: Mar 2010 Reputation: 0
amortization and depreciation question
Hello, All!

I am new to this forum but have begun some accounting fun so I very well may become a regular

I have a question regarding amortization and depreciation.

If you know a company's non-current asset balances (plant and equipment net \$59,000, and Patent net \$28,000) and that no long-term assets were purchased or sold during the year reported on the balance sheet, how would one figure out how much amortization and depreciation expense the company recoded during that year?

I would guess it's 3,000, 7,000, or 4,000 but I'm not sure.

Thanks for any help that you can provide.
03-27-2010, 06:07 AM,
 Qureshi Muhammad Zeeshan Junior Member Posts: 26 Threads: 3 Joined: Mar 2010 Reputation: 0

well dear, According to my knowledge u can not calculate Depreciation without complete information.
u have just given the balance of Assets nothing else
so it is not possible
infact, u can calculate Depreciation or amortization if both Opening and closing balance of Assets are given.
dep would be the amount of difference b/w opening and closing balance if there were no purchase and Disposal.
03-27-2010, 06:14 AM,
 Qureshi Muhammad Zeeshan Junior Member Posts: 26 Threads: 3 Joined: Mar 2010 Reputation: 0

similarly u can calculate depreciation if the assets was used only 1 year.so u can calculate the depreciation by taking the percentage of depreciation.. for this purpose, divide the depreciation amount of the previous year in which the asset was used with the total cost of Asset, u get the percentage and then u can easily calculate the depreciation of this year.
03-27-2010, 06:16 AM,
 Qureshi Muhammad Zeeshan Junior Member Posts: 26 Threads: 3 Joined: Mar 2010 Reputation: 0