A chemical plant purchased a $ 167,147 machine that has a useful life of 7 years. If the machine has a salvage value of $ 25,183 at the end of its life, and straight line depreciation is used, what is the book value at the end of year 4?
Q: Swifty Corporation purchased a depreciable asset for $359100. The estimated salvage value is $33500,…
A: Depreciation base of the asset = Cost - Salvage value
Q: Concord Corporation constructed a building at a cost of $13650000. Weighted-average accumulated…
A: depreciation expense under SLM method = (Cost incurred +avoidable interest cost - salvage value) /…
Q: A machine was installed at a cost of RM3,600. Its useful life was estimated to be five years or…
A: Depreciation is the amount decrease in value of fixed assets with period of time and usage.
Q: depreciation to be charged against the machine during each of the remaining years of its useful…
A: Accounting for change in accounting estimate is envisaged in IAS 8 It is pertinent to note that the…
Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…
A: Depreciation refers to the reduction in the value of assets due to usage of assets or passage of…
Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…
A:
Q: On January 1, a machine with a useful life of five years and a salvage value of $30000 was purchased…
A: Depreciation has considered a reduction in the value of assets due to the uses of that asset. We can…
Q: athe machine has an estimated salvage value of P10,000 at the end of its useful life of 8 yrs.…
A: Double declining balance method is which there is double the depreciation of straight line method of…
Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…
A: Lets understand the basics. Depreciation is a reduction in value of asset due to wear and tear,…
Q: A machine with a cost of $474000 has an estimated salvage value of $24000 and an estimated useful…
A:
Q: When originally purchased, a vehicle costing $25,380 had an estimated useful life of 8 years and an…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: When originally purchased, a vehicle costing $23,000 had an estimated useful life of 8 years and an…
A: The computation is as follows: Hence, option A) $5,000 is the correct answer.
Q: An asset was purchased and installed for $277,685. The asset is classified as MACRS 7-year property.…
A: Depreciation: Generally speaking, the word "depreciation" refers to an accounting process that is…
Q: Jones Company purchased a machine for $400,000. The company expects the service life of the machine…
A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…
Q: Slovac Company purchased a machine that has an estimated useful life of eight years for $7,500. Its…
A: Determine the depreciation rate applied each year.
Q: Majaan International, purchased equipment for $500,000 which was estimated to have a useful life of…
A: Calculation of depreciation using Straight line method To calculate the depreciation which know the…
Q: JIG Company has an equipment costing $1,000,000 with an estimated residual value of $100,000 and an…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: Equipment with a cost of $477400 has an estimated salvage value of $55000 and an estimated life of 4…
A: Depreciation is the way of allocating the cost of the assets over the life of the asset, it can be…
Q: Marissa's company recently purchased a depreciable asset for $190,000. The estimated salvage value…
A: Depreciation is an outlay reported in the books of a business entity to report the regular usage of…
Q: A building was purchased on January 1, 1998, for $240,000 and straight line depreciation method was…
A: Given the following information: Building was purchased on January 1, 1998, for $240,000 Straight…
Q: Equipment with a cost of $950000 has an estimated salvage value of $30000 and an estimated life of 4…
A: Depreciation: It refers to a gradual decrease in the fixed asset’s value because of obsolescence,…
Q: Duncan Company purchased a machine that cost $46002, has an estimated residual value of $2838, and…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: Greg Maddox Company constructed a building at a cost of $2,200,000 and occupied it beginning in…
A: Depreciation is a decrease in the value of an asset due to various reasons like wear and tear,…
Q: truck costing $20,000 was purchased on January 1, 2004. It was depreciated using the straight-line…
A: Answer - Straight Line Depreciation Uniform depreciation of an asset's value Home › Resources ›…
Q: A firm bought a machine for P56, 000. Other expenses including installation amounted to P4, 000. The…
A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…
Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…
A: In straight line depreciation there is uniformly annual depreciation depending upon life of…
Q: A firm is trying to decide whether to keep an item of construction equipmentanother year. The firm…
A: DDB method is known as Double declining balance method and in this method, depreciation is charged…
Q: Equipment with a cost of $662000 has an estimated salvage value of $50000 and an estimated life of 4…
A: Depreciation is the method of allocating the cost of a asset over its useful life. Depreciation…
Q: The total depreciation of an equipment after its 22 years of useful life is P621,765. Using the…
A: >Accounting principle states that the cost of the long-term assets (like equipment) is to be…
Q: A truck that cost $8,000 was originally being depreciated over 4 years using the straight-line…
A: Annual depreciation =(cost of the assets - salvage value) /life of the assets = (8000-0) /4 = $2000
Q: A machine purchased for #919866 has a depreciable life of 7 years, and it has a terminal book…
A: Depreciation expense is the amount that a company's assets are depreciated for a single period,…
Q: Company D recently purchased an equipment that costs $50,000, has a life of 4 years and a salvage…
A: In this we need to find out depreciation based on the number of units.
Q: Flint Company acquires a delivery truck at a cost of $48,000. The truck is expected to have a…
A: Step1: Calculating the annual value of depreciation expenses for the first year using the…
Q: depreciation expense for year 3 would be
A: Compute the depreciation expense per year.
Q: Prepare the depreciation schedule for the machines using double decline method over 4 years from…
A: Depreciation is the reduction or decrease in value of fixed assets over the period of time. Several…
Q: A company used straight-line depreciation for equipment that cost $12,000, had a salvage value of…
A: Solution - Depreciation= (value of assets - residual value)/No. Of years of useful life (As per…
Q: A printing machine had an initial investment of 3,248,969 and a salvage value of 65,478 after a…
A: Initial investment = 3,248,969 Salvage value = 65478 Sum of years digits = [Life*(Life+1)]/2…
Q: A company purchased a CNC machine for $40,000. It has a salvage value of $4,000 at the end of its…
A: Ans. The useful number of years of the machine = 10 years Therefore, the straight line depreciation…
Q: Equipment with a cost of $450,000 has an estimated salvage value of $30,000 and an estimated life of…
A: The depreciation is a decline in the value of tangible assets over their useful life. it is a…
Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…
A: Depreciation: It is an non-cash expense which is charged on fixed assets of the organisation.
Q: The price of a corporate railroad car purchased by Prost Corporation was $109,406. It cost $1,422…
A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…
Q: You purchased a molding machine at a cost of $88,000. It has an estimateduseful life of 12 years…
A: The Numerical has covered the concept of Depreciation Accounting. Depreciation is a Non Cash…
Q: The cost of a machine is 18,000 with a salvage value of RO 4270 at the end of its life of five…
A: The answer is option (b.) [RO 3375] Refer step 2 for explanation
Q: An engineer bought equipment for P500,00O. HE spent an additional amount of P30,000 for installation…
A: Total cost of the equipment = P500,000 + P30,000 = P530,000 Annual depreciation = Total…
Q: ramirez company installs a computerized manufacturing machine in its factory at the beginning of the…
A: Depreciation is the gradual decline that occurs in the asset’s value. It is recorded as a non-cash…
Q: A machine was purchased for $68,000. It has a useful life of 5 years and a residual value of $8,000.…
A: Annual depreciation (Straightline) = (Original cost - Residual value) / Useful life
Typed answer please. I need correct answer and I will rate accordingly.
Step by step
Solved in 2 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 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.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.When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.
- 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.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.
- 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.IMPACT OF IMPROVEMENTS AND REPLACEMENTS ON THE CALCULATION OF DEPRECIATION On January 1, 20-1, Dans Demolition purchased two jackhammers for 2,500 each with a salvage value of 100 each and estimated useful lives of four years. On January 1, 20-2, a stronger blade to improve performance was installed in Jackhammer A for 800 cash and the compressor was replaced in Jackhammer B for 200 cash. The compressor is expected to extend the life of Jackhammer B one year beyond the original estimate. REQUIRED 1. Using the straight-line method, prepare general journal entries for depreciation on December 31, 20-1, for Jackhammers A and B. 2. Enter the transactions for January 20-2 in a general journal. 3. Assuming no other additions, improvements, or replacements, calculate the depreciation expense for each jackhammer for 20-2 through 20-4.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.
- Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual value is 15,000. Akron estimates that the asset has a service life of 5 years. Calculate the depreciation expense using the sum-of-the-years-digits method for Years 1 and 2 of the assets life.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. Dunedin buys equipment frequently and wants to print a depreciation schedule for each assets life. Review the worksheet called DEPREC that follows these requirements. Since some assets acquired are depreciated by straight-line, others by units of production, and others by double-declining balance, DEPREC shows all three methods. You are to use this worksheet to prepare depreciation schedules for the new machine.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.