1. An equipment costs Php 1,500,000. At the end of its economic life of five years, its salvage value is Php 500,000. Using Sum of the Years Digit Method of Depreciation, what will be its book value for the third year?
Q: An asset costing Tk.38000 is estimated to have an economic life of 12 years with a net salvage value…
A: Depreciation expenses under Sum-of-year-digits method Depreciation Expenses = Remaining usful life…
Q: An equipment costing Php 750,000 has a life expectancy of 6 years. Using the sum-of-the–year’s digit…
A: Depreciation can be defined as the non-cash expense that has a major role in financial statements.…
Q: If the depreciation on year 8 is 15,282 and the book value on the same year is 424,684 and money is…
A: Depreciation: A depreciation is a non-cash expenses for the company. The depreciation expenses is…
Q: An equipment costs Php 10,000 with a salvage value of Php 500 at the end of 10 years. Calculate the…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: A machine costing P1,500,000.00 has an estimated economic life of 7 years. If the salvage value is…
A: The depreciation on fixed assets can be computed using various methods as straight line method,…
Q: 3. An equipment cost PHP 10,000 with salvage value of PHP 500 at the end of 10 years. Calculate the…
A: Equipment cost (Co) = PHP 10000 Salvage value (Cs) = PHP 500 n = 10 years According to straight line…
Q: The first cost of a machine is Php 1,800,000 with a salvage value of Php 400,000 at the end of its…
A: Depreciation = C × (S/C)m/n C = original cost S = scrape value n = life of property in years m =…
Q: The equipment is worth P56,000 with a salvage value of P15,000 at the end of 5 years. If the…
A: Cost of Equipment 56000 Less: Salvage value 15000 Depreciable value 41000 Estimated life 5…
Q: A tool is purehased for $500,000. The expected life is 25 years. The salvage value is $100,000. what…
A: Depreciation represents the reduction in the value of the asset over a useful life of the asset. It…
Q: 1. An equipment costing P750,000 has a life expectancy of 6 years. Using the sum-of-year’s digit…
A: Sum of the useful life=6+5+4+3+2+1=21 Depreciable base =Cost of the asset-Salvage value In the sum…
Q: Equipment was purchased for RM157,000 and there was a cost of RM20,000 for building a foundation and…
A: It's simplest method of charging depreciation on an asset. Depreciation is charged on cost of asset.…
Q: A machine costs Php 300,000 with a salvage value of Php 50,000 at the end of its life of 10 years.…
A: Machine cost (C) = Php 300000 Salvage value (S) = Php 50000 n = 10 years r = 6%
Q: A piece of machinery costs P50,000 and has an anticipated P8,000 salvage value at the end of its…
A: Depreciation is a gradual decrease in the value of asset due to normal wear and tear, obsolescence…
Q: An asset is purchased for Php50,000. The salvage value in 25 years is Php100,00. What are the…
A: Purchase price = Php 50,000 Salvage value = Php 10,000 Life = 25 Years
Q: An engineer bought equipment for P500,000. Other expenses including installation amounted to…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: A factory equipment has an initial cost of Php200,000.00. Its salvage value after 10 years is…
A: Initial cost = Php 200,000 Salvage value = Php 20,000 Life = 10 Years Annual depreciation = (Initial…
Q: A machine has a first cost of Php 13,000.,an estimate life of 15 years, and an estimated salvage…
A: SLM is straight line method of depreciation in which same depreciation is charged every year of cost…
Q: KFC bought an equipment for 2500 RO. Its useful life is 5 years and the salvage value is 500 RO.…
A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…
Q: An asset costing P50,000 has a life expectancy of 6 years and a estimated salvage value of P8,000.…
A: Depreciation charging method includes: Straight-line method Sum of years digit method Double…
Q: The salvage value of the equipment is P100,000 with a service life of 10 years. The annual…
A: The question is based on the concept of Depreciation Accounting.
Q: A certain machine has a first cost of 30,000; annual costs of 6,000; a salvage value of 4,000 and a…
A: Introduction: Depreciation is the process of allocating the asset's value over its expected or…
Q: An asset with a first cost of $50,000 is to be depreciated by the straight line method over a 5-year…
A:
Q: A machine cost 75,000 and the salvage value is 15,000 after 15 years. Find, a) the depreciation by…
A: Cost of Machinery = 75,000 Salvage Value = 15,000 Note: Since, you have posted a question with…
Q: An asset with unknown first cost value is depreciated by the straight-line method over its five year…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: 1. The cost of an asset is Php 200,000 while the estimated salvage value is Php 15,000 and it can…
A: Depreciation is the allocation of cost of asset over the useful life. It can be charged by various…
Q: asset costing P50,000 has a life expectancy of 6 years and an estimated salvage value of P8000.…
A: Given: Cost of asset = P50,000 Estimate Salvage value= P8,000 Useful life of the asset =6 years…
Q: The initial cost of a piece of construction equipment is P30,000,000 having a useful life of 10…
A: Sinking Fund Method: It is possible to depreciate an asset while simultaneously earning enough money…
Q: A certain equipment has a first cost of P 12,000 and a salvage value of P 500 at the end of x years.…
A: Equipment cost = P 12,000 Salvage value = P 500 Annual depreciation = P 1,437.5 Life = x
Q: A machine costs P 8,000 and an estimated life of 10 years with a salvage value of P500. What is the…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: An equipment costs P8,000 has an economic life of 8 years and salvage value of P400 at the end of 8…
A: Equipment Costs = P8,000 Time Period = 8 Years Salvage Value = P400 1st Year Depreciation Amount =…
Q: A machine bought at P420,000 has an economic life of 6 years with a salvage value of P50,000. Cost…
A: Depreciation is the decrease in the value of assets due to its use or obsolescence.
Q: The first cost of a machine is Php 1,800,000 with a salvage value of Php 300,000 at the end of its…
A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…
Q: An equipment costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the…
A: Depreciation is the reduction or allocation of cost of asset over the useful life of the asset.…
Q: An equipment costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the…
A: Equipment cost = P 250,000 Book value at the end of period = P 30,000 Depreciable value =…
Q: use Sinking Fund Method and determine the depreciation at the 5th year.
A: Sinking fund method is a method of depreciation technique. This method helps in taking financing…
Q: 3. An asset cost Php 18,000 and had an estimated net salvage value of Php 650 and an estimated…
A: Depreciation charge is the value of the asset that is reduced due to wear and tear and use of the…
Q: d its bo
A: (1) Depreciation under Straight Line method Depreciation = (Original cost of equipment - Salvage…
Q: A building which was constructed for Php 1,000,000 has an estimated life of 15 years and a salvage…
A: Depreciation is a sort of outlay which has to be reported by the entity for recording the regular…
Q: A piece of machinery costs P50,000 and has an anticipated P8,000 salvage value at the end of its…
A: Depreciation Expense: Depreciation expense is the reduction in a particular asset due to its use or…
Q: A machine costing Rm 100,000 has a life expentancy of five years and a salvage value Rm 20,000.…
A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…
Q: Using a Sum of the Years'-Digits Depreciation, find the annual depreciation of a lathe machine that…
A: Cost of Asset : PHP 120,000 Salvage Value : PHP 15,000 Depreciable Base = Cost of Asset – Salvage…
Q: An engineer bought equipment for P600,000. Other expenses including installation amounted to…
A: Depreciation accounting is an important component of valuation of fixed assets that are involved in…
Q: A bulldozer has an initial cost of Php 2,000,000. Its salvage value after 12 years is Php 175,000.…
A: Depreciation: It can be defined as a monetary fall in the value of the asset because of continuous…
Q: The first cost of a certain machine is P20,000 with a salvage value of P1,000 at the end of its…
A:
Q: 1. An equipment costs P 1,200,000.00 at the end of its economic life of 5 years. Its salvage value…
A: Here in this question, we are required to determine book value of asset under sum of years digit…
Q: The first coat of a road laying machine is Php 8,000,000. Its salvage value after five years is Php…
A: Depreciation per km = (Cost - Salvage value) / Total kilometers Depreciation per km = (Php 8,000,000…
Q: A piece of machinery costs P50,000 and has an anticipated P8,000 salvage value at the end of its…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
PLEASE PROVIDE COMPLETE SOLUTION AND FINAL ANSWER ASAP
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for ten years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.Montezuma Inc. purchases a delivery truck for $20,000. The truck has a salvage value of $8,000 and is expected to be driven for ten years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After five years of recording depreciation, Montezuma determines that the delivery truck will be useful for another five years (ten years in total, as originally expected) and that the salvage value will increase to $10,000. Determine the depreciation expense for the final five years of the assets life, and create the journal entry for years 6–10 (the entry will be the same for each of the five years).
- Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After three years of recording depreciation, Montezuma determines that the delivery truck will only be useful for another three years and that the salvage value will increase to $4,000. Determine the depreciation expense for the final three years of the assets life, and create the journal entry for year four.
- Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for 120,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expense.Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.
- Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value at the time of purchase was $15,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. Calculate annual depreciation expense for the first four years. Determine the depreciation expense for the final fifteen years of the assets life, and create the journal entry for year five.Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. With DEPREC5 still on the screen, click the Chart sheet tab. This chart shows the accumulated depreciation under all three depreciation methods. Identify below the depreciation method that each represents. Series 1 _____________________ Series 2 _____________________ Series 3 _____________________ When the assignment is complete, close the file without saving it again. Worksheet. The problem thus far has assumed that assets are depreciated a full year in the year acquired. Normally, depreciation begins in the month acquired. For example, an asset acquired at the beginning of April is depreciated for only nine months in the year of acquisition. Modify the DEPREC2 worksheet to include the month of acquisition as an additional item of input. To demonstrate proper handling of this factor on the depreciation schedule, modify the formulas for the first two years. Some of the formulas may not actually need to be revised. Do not modify the formulas for Years 3 through 8 and ignore the numbers shown in those years. Some will be incorrect as will be some of the totals. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as DEPRECT. Hint: Insert the month in row 6 of the Data Section specifying the month by a number (e.g., April is the fourth month of the year). Redo the formulas for Years 1 and 2. For the units of production method, assume no change in the estimated hours for both years. Chart. Using the DEPREC5 file, prepare a line chart or XY chart that plots annual depreciation expense under all three depreciation methods. No Chart Data Table is needed; use the range B29 to E36 on the worksheet as a basis for preparing the chart if you prepare an XY chart. Use C29 to E36 if you prepare a line chart. Enter your name somewhere on the chart. Save the file again as DEPREC5. Print the chart.Urquhart Global purchases a building to house its administrative offices for $500,000. The best estimate of the salvage value at the time of purchase was $45,000, and it is expected to be used for forty years. Urquhart uses the straight-line depreciation method for all buildings. After ten years of recording depreciation, Urquhart determines that the building will be useful for a total of fifty years instead of forty. Calculate annual depreciation expense for the first ten years. Determine the depreciation expense for the final forty years of the assets life, and create the journal entry for year eleven.
