42 pls show full solution 42. A machine cost P 2750000 and has a residual value at 7% of its cost, it is expected to havea useful life of 18 years, it's estimated used is 5000 hours in its entire life. After using itfor 1250 hours, find the accumulated depreciation.a. 735566b. 720435c. 639375d. 720320e. None of the above43. An asphalt and aggregate mixing plant having a capacity of 50 cu.m every hour costsP2500000. It is estimated to process 800,000 m³ during it's life. During a certain year, itproduced 60,0000 m.. Using the service ouput method, if its scrap value is P100000,determine the total depreciation during the year.a. 180000b. 170000c. 160000d. 200000e. None of the above44. In problem no. 43, what is the depreciation cost chargeable to each batch of 50 m'a. 120b. 160C. 150d200

Depreciation is the allocation of cost of asset over the useful life of the asset. There are several…

Answered: 42. A machine cost P 2750000 and has a…

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 3CE

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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.
St. Johns River Shipyards welding machine is 15 years old, fully depreciated, and has no salvage value. However, even though it is old, it is still functional as originally designed and can be used for quite a while longer. A new welder will cost 182,500 and have an estimated life of 8 years with no salvage value. The new welder will be much more efficient, however, and this enhanced efficiency will increase earnings before depreciation from 27,000 to 74,000 per year. The new machine will be depreciated over its 5-year MACRS recovery period, so the applicable depreciation rates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. The applicable corporate tax rate is 25%, and the project cost of capital is 12%. What is the NPV if the firm replaces the old welder with the new one?
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?
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.
A machine with a cost of $70,887.00 has an estimated residual value of $4,907.00 and an estimated life of 7 years or 16,219 hours. It is to be depreciated by the units-of-output method. What is the amount of depreciation for the second full year, during which the machine was used 3,855 hours? Do not round your intermediate calculations. $9,425.71 $18,851.43 $15,682.40 $16,848.72
A machine with a cost of $68,856 has an estimated residual value of $5,301 and an estimated life of 3 years or 15,143 hours. It is to be depreciated by the units-of-activity method. What is the amount of depreciation for the second full year, during which the machine was used 4,595 hours? Do not round your intermediate calculations. a. $21,185.00 b. $42,370.00 c. $19,285.16 d. $20,893.70
A machine with a cost of $120,000 has an estimated residual value of $15,000 and an estimated life of five years or 15,000 hours. It is to be depreciated by the units-of-activity method. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours? a. $5,000 b. $35,000 c. $21,000 d. $45,000 2. Equipment with a cost of $220,000 has an estimated residual value of $30,000 and an estimated life of 10 years or 19,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 2,100 hours? a. $19,000 b. $21,000 c. $22,000 d. $30,000 3. A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of four years or 18,000 hours. What is the amount of depreciation for the second full year, using the double-declining-balance method? a. $17,500 b. $37,500 c. $18,750 d. $16,667
A machine with a cost of $67,600.00 has an estimated residual value of $3,188.00 and an estimated life of 5 years or 15,868 hours. What is the amount of depreciation for the second full year, using the double declining-balance method? Select the correct answer. $25,764.80 $13,520.00 $16,224.00 $27,040.00
A machine with a cost of $135,000 has an estimated residual value of $15,000 and an estimated life of 3 years or 15,000 hours. It is to be depreciated by the units-of-activity method. What is the amount of depreciation for the second full year, during which the machine was used 6,100 hours? a.$48,800 b.$33,800 c.$61,000 d.$6,100
A machine with a cost of $60,631.00 has an estimated residual value of $4,924.00 and an estimated life of 5 years or 17,537 hours. It is to be depreciated by the units-of-output method. What is the amount of depreciation for the second full year, during which the machine was used 4,511 hours? Equipment with a cost of $220,000 has an estimated residual value of $30,000 and an estimated life of 10 years or 19,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 2,100 hours?
A machine with a cost of $64,800 has an estimated residual value of $4,863 and an estimated life of 5 years or 18,281 hours. What is the amount of depreciation for the second full year, using the double-declining-balance method? a. $12,960.00 b. $23,974.80 c. $15,552.00 d. $25,920.00
A machine costing P550,000 has an estimate scrap value of P85,000 at the end of its economic life of 8 years. Using the Double-Declining Balance Method of depreciation, what is its book value after four years of service? A. P130,518 B. P174,023 C. P216,217 D. P214,167

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