5. An electronic balance costs P90, 000 and has an estimated salvage value of P10, 000 at the end of its 10 years life time. Use the straight line method. a. What is the depreciation in three years? b. What is the book value in three years?

5. An electronic balance costs P90, 000 and has an estimated salvage value of P10, 000 at the end of its 10 years life time. Use the straight line method. a. What is the depreciation in three years? b. What is the book value in three years?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 3EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...

See similar textbooks

Related questions

Q: A. Assume that you have completed your plans and proformas for the next year of operations. Your pro...

A: Decision making is an important part of conducting every business transactions in an entity. The dec...

Q: Warner Company's year-end unadjusted trial balance shows accounts receivable of $99,000, allowance f...

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...

Q: A high-definition TV costs a company $3,100 to manufacture, If it sells for $6,742, what is the perc...

A: Solution: Markup is the difference between the selling price of a good or service and cost. It is ge...

Q: Suppose that the $ for $ spot exchange rate is 2:1, the 90day forward exchange rate is F = 2:156, th...

A: Exchange rate : Exchange rate is the conversion rate of currency of one country into another country...

Q: A trial balance prepared before any adjustments have been recorded is: Multiple Choice An unadjusted...

A: Trial balance is a statement of all accounts of a business entity with their individual balances sep...

Q: You pay your business phone bill paying cash. How would you record this transaction? * O Debit Bank,...

A: A business phone bill is an expense account. Expense accounts have a nominal debit balance. When the...

Q: Whitman Corporation, a merchandising company, reported sales of 7,400 units for May at a selling pri...

A: Income statement is prepared by the business organization so as to know how much amount of Gross pro...

Q: The ledger of Mai Company includes the following accounts with normal balances as of December 31: Co...

A: Closing entries are used to close the temporary account and transfer the balance to the permanent ac...

Q: The contribution margin income statement of Burger Queen for January is given below: BQ sells thr...

Q: Camila Company has set the following standard cost per unit for direct materials and direct labor. D...

A: Lets understand the basics. Direct material price variance indicates the variance between the rate a...

Q: thinking

A: Accountants must be able to use critical thinking abilities to understand the narrative behind the n...

Q: b. Accumulated Depreciation: The company has only one plant asset (truck) that it purchased at the s...

A: Accumulated depreciation is the cumulative depreciation of an asset up to a single point in its life...

Q: What is the value today of receiving $4,000 at the end of each year for the next 5 years, assuming a...

A: Year Cash received Present value factor @ 8% Present value 1 4,000 0.926 3704 2 4,000 0.857 3428...

Q: A company reported that its bonds with a par value of $50,000 and a carrying value of $64,000 are re...

A: Cash flows from financing activities would be an outflow as a result of cash flow from retired bonds...

Q: A corporation sold 13,500 shares of its $10 par value common stock at a cash price of $14 per share....

A: Common Stock - Common Stock is the stock issued to the common shareholder's of the company.

Q: A house and lot can be acquired at a down payment of P500,000 and a yearly payment of P100,000 at th...

A: Solution: Cash price of property = Down payment + Present value of annual payments discounted at 14%...

Q: Cost of Gross Goods Sold Sales Profit (Loss) Net Ending Beg Inventory Purchases Inventory Net Sales ...

A: Formula: Net sales = Sales - Sales returns Sales = Net sales + Sales returns

Q: Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East A...

A: The budget is prepared to estimate the requirements for the future period. The purchase budget tells...

Q: Requlred Informetion Use the following information for the Exercises below. (Algo) [The following in...

A: Fair value adjustment is gain when fair value exceed the costs . Fair value adjustment = Total Fair ...

Q: Paul’s Pool Service provides pool cleaning, chemical application, and pool repairs for residential c...

A: A budget is the statement of expected future expenses and revenues for a specific period of time. Bu...

Q: Use the following information and the indirect method to calculate the net cash provided or used by ...

A: Cash flow from Operating Activities - Cash flow from operating Activities includes activities involv...

Q: sells a line of product that are sold usually all year round. The company has a maximum production c...

A: The question is related to Cost Volume Profit Analysis. The Basic equation of Cost Volume Profit Ana...

Q: Required information Trey Monson starts a merchandising business on December 1 and enters into the f...

A: FIFO method : It is a method of pricing the issues of materials, in the order in which they are purc...

Q: On May 2, 2019 PIONEER, PHILS INC. Ships ten (10) Compact Disc Stereo to KALIDAD Appliance Center. ...

A: A journal entry is an accounting entry that is used to record a business transaction in the accounti...

Q: ABC Company (ABC), a manufacturer of hybrid engine vehicles, had pretax financial income of P30 bill...

A: Deferred tax liability arises out of the temporary differences between the tax-deductible expenses a...

Q: The X division of XYZ Company is currently operating at 60% capacity or 6,000 units. It produces a s...

A: Answer 1) Calculation of Transfer price at 80% Capacity (i.e., 8,000 units) Transfer price per unit ...

Q: What makes a custom broker qualified to complete their service? Any employee of the Canada Border Se...

A: Canada Border Services Agency set rules for customs in Canada.

Q: A company paid $0.82 in cash dividends per share. Its earn dividend yield equals:

A: In this question, we have to calculate dividend yield which can be calculated by dividing the divide...

Q: Provide an overall analysis of the ratios below. A. Debt Ratio Total Liabilities/ Total Assets ...

A: Solution Financial ratios are the relative magnitude of two selected numerical values taken from an ...

Q: An unused tax loss will arise when: a. Expenses deductible for tax purposes are less than the ta...

A: Taxable income is the one upon which a tax percentage is charged as per the tax bracket to be paid t...

Q: Required information Trey Monson starts a merchandising business on December 1 and enters into the f...

A: In LIFO method ( Last in first out ) : The inventory bought / purchased last is sold first . The end...

Q: On October 1, 2021, POGI Company purchased 4,000 of the P1,000 face amount, 10% bonds of GANDA Compa...

A: Bonds- A bond is a fixed-income tool that represents a loan made by a shareholder to a borrower (cla...

Q: The following data has been collected about Keller Company's stockholders' equity accounts: Common s...

A: Treasury Stock: Treasury stock, sometimes referred to as treasury shares or reacquired stock, is sto...

Q: A machine has a first cost of P97,198.62 and has an expected salvage value after 10 years P11,240.93...

A: Depreciation is the outlay which is to be reported in the books in order to record the regular usage...

Q: 39) Pall, Inc, owns 40% of the outstanding stocs received a $4,000 cash dividend from Sibil. WE fina...

A: Balance sheet represents the financial position of the company that involve the assets, liabilities,...

Q: On December 22, Travis Company purchased merchandise on account from a supplier for $7,500, terms 2/...

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...

Q: Grateful Enterprises had the following income before tax provision and effective annual tax rate for...

A: The tax rate for : Quarter 1 = 30% Quarter 2 = 30% Quarter 3 = 25% Cumulative Income ( Quarter ) = C...

Q: Exercise 6-10 Multiproduct Break-Even Analysis (LO6-9] Lucido Products markets two computer games: C...

A: Contribution Margin - It is the profit available after deducting variable Expenses from the sales re...

Q: A corporation sold 13,500 shares of its $10 par value common stock at a cash price of $14 per share....

A: When shares are sold by a corporation in excess of par, cash is received and an increase in cash is ...

Q: information to calculate cash venue ceivable, January 1 ceivable, December 31

A: Cash received from dividends = Dividends receivable, January 1+ Dividends revenue - Dividends receiv...

Q: Enviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest payment...

A: Premium on bonds payable = Cash proceeds from issuance of bonds - Par value of bonds Semi annual bon...

Q: If a company purchases equipment costing $4,500 on credit, the effect on the accounting equation wou...

A: The question is related to the purchase of equipment on credit. The Accounting Equation is Assets =...

Q: What's More A. Directions: Below is the summarized Compute the following. V sheet of paper. 1. Avera...

A: The question is based on the concept of Financial Accounting. As per the Bartleby guidelines we are ...

Q: Specne juenuication–reipetuai: Goods purchased Cost of Goods Sold Inventory Balance # of # of units ...

A: Inventory valuation is a process of calculating the inventory of the business. The specific identifi...

Q: If a sole proprietor buys a printer for his business, where would the printer be reported on Schedul...

A: It would be reported under the category depreciation (Part 2, number 13 depreciation). No it would n...

Q: On January 1, MM Co. borrows $340,000 cash from a bank and in return signs an 8% installment note fo...

A: Interest expense for first installment = Notes payable x rate of interest x no. of months in calenda...

Q: A research laboratory which requires P5M for original construction; P100k at the end of every year f...

A: Original construction cost =5,000,000 Annual operating cost from year 1 to 6 = 100,000 Annual operat...

Q: A company reported that its bonds with a par value of $50,000 and a carrying value of $60,500 are re...

A: Cash flow on retirement of bond On retirement of bond there is cash outflows from financing activiti...

Q: Use the data provided for Gotbucks Bank, Incorporated, to answer this question. Gotbucks Bank, Incor...

A: You have posted multiple-part questions, so as per Bartleby policy the first three inter-linked part...

Q: Martinez Corporation reported net sales of $772,000, net income of $135,000, and total assets of $7,...

A: Profit margin= Net income/net Sales *100

Question

5. An electronic balance costs P90, 000 and has an
estimated salvage value of P10, 000 at the end of its 10
years life time. Use the straight line method.
What is the depreciation in three years?
b. What is the book value in three years?
a.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

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 6â€“10 (the entry will be the same for each of the five years).
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 ten years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.
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 eight years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.
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?
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.
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.
Taos Productions bought a piece of equipment for $79,860 that will last for 5 years. The equipment will generate net operating cash flows of $20,000 per year and will have no salvage value at the end of its life. What is the internal rate of return?
Cinemar Productions bought a piece of equipment for $55,898 that will last for 5 years. The equipment will generate net operating cash flows of $14,000 per year and will have no salvage value at the end of its life. What is the internal rate of return?
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.
Use the information in Problem A-1 to solve this problem. Assume that the van is five-year property for tax purposes. Required Prepare a schedule of depreciation under MACRS. Round figures to the nearest whole dollar. PROBLEM A-1 A delivery van was bought for 18,000. The estimated life of the van is four years. The trade-in value at the end of four years is estimated to be 2,000. Check Figure Year 3 depreciation, 3,456