A company buys an industrial lathe for $95,000. It has a useful life of 20 years and a salvage value of $15,000. What is the basis of the lathe? What is the depreciation each year? What is the value of the lathe after 8 years? When will the lathe be worth $25,000? Between __________ and __________ years

Q: Kenzie Company purchased a 3-D printer for $318,000. Although this printer is expected to last for…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/3 years) x 2 =…

Q: A machine is valued at $10,000. If the depreciation at the end of each year is 40% of its value at…

A: Here we will use concept of depreciation to determine value of machine at the end of 4 years. we…

Q: A machine, purchased for$50,000, has a depreciable life of five years. It will have an expected…

A:

Q: One year ago, your company purchased a machine used in manufacturing for $95,000. You have learned…

A: Capital Budgeting Techniques are used to choose the most profitable investment alternative. Based on…

Q: A factory equipment has an initial cost of P175,000. Its salvage value after 8 years is P18,000. As…

A: ANSWER : Cost of the equipment = 175,000 Cost of the equipment - estimated salvage value =…

Q: One year​ ago, your company purchased a machine used in manufacturing for $105,000. You have learned…

A: NPV is the present worth of future inflows & outflows. It is calculated by subtracting PV of…

Q: A company uses a computer for its employees to record their entry and exit digitally, the equipment…

A: Equipment cost = $ 32000 Scrap value = $ 7500 Life = 10 Years

Q: A machine purchased for 150,000 its estimated life is 15 years, after which it will be sold for…

A: Sum of the years digits (SYD) depreciation Method takes the asset's expected life and adds together…

Q: Angels Inc. purchases a piece of equipment for $65,000. The equipment has an expected useful life of…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: A company purchases an asset for P10,000 and plans to keep it for 20 years. the salvage value is…

A: The sum-of-the-years' digits approach is a quick way to figure out how much an asset will depreciate…

Q: what will the Depreciation Expense be for the second year if the straight-line method is used

A: Given information is: French Confection, Inc., bought machinery at a cost of $83,000 at the…

Q: A company purchases an asset for P10,000.00 and plans to keep it for 20 years. If the salvage value…

A: Asset price = P 10000 Useful life (n) = 20 years Salvage value = 0

Q: A company is planning to purchase a machine that will cost P240,000, have a six-year life, and be…

A: Net income = P 30000 n = 6 years Initial cost (I) = P 240000 Let r = Rate of return

Q: ssume you work for a company as an accountant and you have been asked to calculate the depreciation…

A: a)  Year Beginning WDV Depreciation Ending WDV 01/04/2021 350,000   350,000 31/03/2021…

Q: A company buys a machine for $80,000 that has an expected life of 10 years and no salvage value. The…

A: Formula: Accounting rate of return = Net Income after tax / Average investment. Division of average…

Q: A company bought a piece of equipment for $45,700 and expects to use it for eight years. The company…

A: Working note: Computation of rate of depreciation under double-declining balance method: Rate of…

Q: A company bought a new conveyor belt for $ 182,000. If it depreciates on a straight-line basis at $…

A: The useful life of machine can be calculated with the help of straight line depreciation formula

Q: What is the depreciation each year for a trailer that cost $10,000 new, has a life of 5 years, and a…

A: Every fixed asset loses its value over a period. Depreciation is recorded on the cost of assets to…

Q: A crane rental company has acquired a new heavy-duty crane for $260,000. The company calculates…

A: Depreciation is a non-cash expense which is incurred due to a continuous use of fixed asset.…

Q: ABC Company purchases equipment with a cost of $100,000.  In addition, it pays $20,000 to install…

A: The value of assets goes on decreasing with the passage of time due to various reasons such as…

Q: Aeetal company has acquired a new heavy duty crane for $300.000 The company calculates depreciation…

A: Depreciation is a non-cash expense which is incurred due to a continuous use of fixed asset.…

Q: A company purchases an asset for P 10,000.00 and plans to keep it for 20 years. If the salvage value…

A: Cost of asset = P 10,000 Life of asset = 20 Years Salvage value = 0 Sum of year digits = [Life of…

Q: A machine is valued at $10,000. If the depreciation at the end of each year is 40% of its value at…

A: Given that;Value of the machine is $10000Depreciation at the end of each year is 40% of its value at…

Q: Mercury Drug purchased a Laboratory equipment for P 100,000 and plans to keep it for 15 years. If…

A: Depreciation is the allocation of cost of asset over the useful life of the asset. Several methods…

Q: A company purchases an asset of Php15,000 and plans to keep it for 20 years. If the salvage value is…

A: Under the sum of the years' digit method, each digit of the total life of an asset is added, and…

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: A company purchased machinery for $ 200,000 on 1st January . It has an estimated useful life of 10…

A: Formula: Depreciation per unit = ( Asset cost - salvage value ) / Total estimated units

Q: Based on this information the payback period is:

A: Annual cash flow=Depreciation+Net income =(10000+5000)=$15000

Q: Eastern corporation replace an old vibratory finishing machine and purchased new machine for $…

A: Net present value means the difference between the present value of cash inflow and present value of…

Q: Ocak Uçan Yağlar Sanayi A.Ş. He bought 6 automatic filling machines and paid a total of 600,000…

A: The question is related to Depreciation Accounting. The ordinary depreciation method as per given…

Q: A company bought a piece of equipment for $49,200 and expects to use it for eight years. The company…

A: Introduction: Depreciation is an accounting procedure that spreads the cost of a tangible or…

Q: A new car is sold for $ 35,000, but the next year its price is specified as 31,400. How much is the…

A: The depreciation amount is the decreased amount in fixed assets with passage of time.

Q: A crane rental company has acquired a new heavy-duty crane for $300,000. The company calculates…

A: Depreciation expense refers to the fall in the value of the asset due to passage of time, wear and…

Q: A company buys an oil rig for $1,500,000 on January 1, 2014.  The life of the rig is 10 years and…

A:

Q: Assume that a company purchased a new machine for $19,000 that has a salvage value of $3,000 at the…

A: Present value of cash inflow = Present value of annual cash inflow + Present value of residual value…

Q: One year​ ago, your company purchased a machine used in manufacturing for $115,000. You have learned…

A: Calculation of NPV of Replacement:To calculate the NPV of Replacement, follow the below steps:

Q: A certain type of machine loses 10% of its value each year.  The machine cost P2,000 originally.…

A: Depreciation is the reduction in the value of asset due to its normal use and tear and wear. It is…

Q: You have bought an asset which costs $15,000. You depreciate it using the Straight Line Depreciation…

A: The depreciation method which assumes that the consumption of economic benefits of long-term asset…

Q: A machine with a purchase value of 850,000 dollars and the productive life of the machine is 7…

A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…

Q: 2. Smith Hauling purchased an 18-wheel truck for $100,000. The truck depreciates at the constant…

A: The question is based on formulation of linear equation for a straight line depreciation charged on…

Q: A certain car was purchased for $25,000. The car has a resale value of $16,000 after a useful life…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Denver Company buys a machine for $65,000 that has an expected life of 4 years and no salvage value.…

A: Answer:   9.54%

Q: An engineer bought an equipment for P 800,000. Other expenses, including installation, amounted to P…

A: depreciation is the decrease in value of the asset over its life dues to constant usage and wear and…

Q: as invested $50,000 in equipment with a 5-year useful life. The machinery will have a salvage value…

A: IRR stands for Internal rate of return refers to the concept that evaluates the profitability factor…

Q: A manufacturing company buys a machine fir 50000. It estimates the machine's useful life is 20 years…

A: Annual depreciation charge = (Cost of machine - Salvage value) / Useful life of machine

Q: A firm has earnings of $8,000 before interest, depreciation, and taxes. A new piece of equipment is…

A: Depreciation is the reduction in the monetary value of tangible assets over time due to old and…

Q: A company is considering purchase of a machinery costing OMR 45,000, It has a life of 3 years and…

A: The payback period is a method of capital budgeting that helps to tells that in how many period the…

Q: A printing machine initially costs ₱158,000. It can be sold for ₱15,000 at the end of its 10-year…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: A machine has an initial cost of $25,000, annual operating cost of $4,500 and a salvage value of…

A: Double-declining balance method (Accelerated method): In this method of depreciation, the…

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.