A company purchases an asset of Php15,000 and plans to keep it for 20 years. If the salvage value is zero at the end of 20 years, what is the depreciation in third year? Use Sum of the Years Digit method.

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: An asset is purchased for $200,000. The salvage value in 20 years is $75,000. What is the…

A: Cost of non-current assets is amortized throughout its useful life and is recorded as depreciation…

Q: A piece of certain equipment has the first cost of ₱90,000 and a salvage value of ₱4,500 at the end…

A: Under double declining Balance method, the depreciation is calculated double the rate 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: If Ricky Padilla uses the straight-line method to depreciate an asset, depreciation expense will be…

A: First we will calculate the book value of machinery using straight line method - Let the book value…

Q: An asset has a first cost of $12,000, an annual operating cost of $3500 and a salvage value of $5000…

A: Given information: Initial cost=$12,000 Annual cost=$3500 Salvage value=$5000 Life=7 years Interest…

Q: Kobi Technologies book-depreciated an asset at $27,500 per year for four years using the straight…

A: Salvage value can be computed using the following formula: Depreciation amount=Initial cost-Salvage…

Q: An asset is purchased is ten times its salvage value. Its estimated life is 10 years, after which it…

A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…

Q: You bought a smartphone at 20,000 Php. At the end of its economic life of four years, its salvage…

A:

Q: Lyceum of Aparri purchased an asset for P 12,555.00 and plans to keep it for 19 years. If the…

A: Depreciation: A depreciation is a non-cash expenses for the company. The depreciation expenses is…

Q: An engineer bought equipment for P500,000. He spent an additional amount of P30,000 for installment…

A: The value at which an asset can be sold at the end of its useful life is known as the salvage value.…

Q: An equipment has a first cost of Php20,000 and has a salvage value of Php2,000 after 10 years. What…

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: Calculate the depreciation life, if the depreciation charge value for the second year is 409, cost…

A: Under sum of years digits method of depreciation, depreciation is charged by taking sum of all…

Q: An asset is purchased for P500,000.00. The salvage value in 25 years is P100,000.00. What is the…

A: The question is related to Depreciation. The details are given as under  Cost of Asset = P500000…

Q: A company purchases a piece of equipment for $50,000. The company estimates a useful life of 10…

A: Depreciation as per straight line method each year       = (  Purchase price of equipment  - salvage…

Q: ory Enterprises pays $256,400 for equipment that will last five years and have a $45,400 salvage…

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

Q: A dump truck was bought for P750,000 three years ago. It will have a salvage value of P100,000 two…

A: The question is based on the concept of Depreciation Accounting.

Q: A property is purchased at 1M and is expected to last 10 years with a salvage value of P100,000.…

A: Initial Cost = P 1,000,000 Salvage value = P100,000. Time Period = 10 Years

Q: 1. An equipment costs Php 1,500,000. At the end of its economic life of five years, its salvage…

A: Depreciation is accounted for an asset to take into consideration the loss in the value of the asset…

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: A computer, printer, and copier were purchased for a total price of Php 250,000 on August 1, 2013.…

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

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 cost of the printing equipment is P500,000 and the cost of handling and installation is P30,000.…

A: The salvage value of the equipment is residual value. It can be calculated by using the depreciation…

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: 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: A small truck is purchased for $17,000. The truck is expected to be of use to the company for 6…

A:

Q: An engineer bought an equipment for P500,000. Other expenses including installations amounted to…

A: Straight line method: Straight line method is the depreciation method under which the fixed asset is…

Q: An asset costing P50,000 has a life expectancy of 6 years and an estimated salvage value of P8000.…

A: Depreciation of asset occurs due to the passing of time and usage of the asset. When a fixed rate of…

Q: An equipment costing P250, 000 has anestimated life of 15 years with a book value ofP30, 000 at the…

A: Methods of Depreciation: Methods of depreciation are the accounting practices used by the company to…

Q: Based on this information the payback period is:

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

Q: An asset is purchased for Php9,000. Its estimated life is 10 years, after which it will be sold for…

A: Depreciation = ((Remaining useful life)/(Sum of Years digits))* Depreciable cost  Depreciable cost =…

Q: A machinery worth Rs 30,000 has a lifetime of 10 years and a salvage value of Rs. 1800. Calculate…

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

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

A: Solution: Sum of year of digit for 20 years = 1+ 2 + 3 +........+20 = 210 Useful life remains in…

Q: A piece of equipment costs ₱351,000 including shipping, installation and taxes. The supplier assures…

A: Sum - of-the -Years Digit method:   The sum of the year's digit depreciation is one method for…

Q: An asset with a first cost of $20,000 has an annual operating cost of $12,000 and a $4000 salvage…

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

Q: A contractor bought a concrete mixer at P120,000,00, if paid in cash, The mixer may also be…

A: given information  initial investment = P120,000 total no of years = 5 years interest rate = 8%

Q: What is the depreciation deduction, using each of the following methods, for the second year for an…

A: Answer a: Rate of depreciation for 200% DB Model=2Useful life=27=0.2857 Depreciation in year 2=Book…

Q: An electronics balance costs P88,000 and has an estimated salvage value of P10,000 at the end of ts…

A: Depreciation = ( Cost of the asset - Salvage value ) * Number of years left / Sum of years

Q: An asset costing $120,000 is to be depreciated over ten years to a nil residual value. Profits after…

A: The payback period is the time period in which a project will generate enough cash flow to recover…

Q: Suppose a manufacturing company bought a machine for RM10,000,000. They have estimated the useful…

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

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: The double-declining-balance method is to be used for an asset with a cost of $90.000. estimated…

A: Given, The cost of asset is $90,000 Life of asset is 5 years  The salvage value at the end is…

Q: An equipment is purchased for P450,000.00 prepare a six year depreciation schedule using the…

A: Depreciation is an accounting technique for distributing a tangible or fixed asset's cost over its…

Q: Tory Enterprises pays $256,400 for equipment that will last five years and have a $45,400 salvage…

A: In company accounting, the double-declining balance (DDB) approach is used to calculate…

Q: The first cost of a certain machine is P20,000 with a salvage value of P1,000 at the end of its…

A: