A Computer has a cost of P14,200 and no salvage value has a depreciation charge of P4,200 during its second year of service when depreciated by sum of the year’s digit method. What is its expected useful life?
Q: A man bought a machine for $ 538,379 six years ago. It has a salvage value of $ 36,294 four years…
A: Sunk cost means the cost which is already incurred and irrelevant in making decision. Depreciation…
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A: As per the double-declining method, the depreciation rate is charged at a double rate of the…
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Q: A machine has an initial cost of P74,777.226 and a salvage value of P8,991.127 after 7 years. What…
A: Initial cost = P 74,777.226 Salvage value = P 8991.127 Life = 7 Years Annual depreciation = (Initial…
Q: 1. An equipment costing P750,000 has a life expectancy of 6 years. Using the sum-of-year’s digit…
A: Sum of the useful life=6+5+4+3+2+1=21 Depreciable base =Cost of the asset-Salvage value In the sum…
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A: Depreciation per hour (Units of production method) =(cost of Asset - salvage value ) / Estimated…
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A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
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A: Formula: Straight line method Depreciation : = Cost of Asset - Salvage value ) /Useful life
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: Equipment with a cost of $74,874, an estimated residual value of $4,863, and an estimated life of 14…
A: Solution: Original annual depreciation = (Cost - Residual value) / useful life = ($74,874 - $4,863)…
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A: Depreciation records the usage of a fixed asset over a period of time and allocates its cost to the…
Q: A machine costing P45,000 is estimated to have a salvage value of P4,350 when retired at the end of…
A: Depreciation rate = 1- ( Salvage Value/Cost)1/n Where n is the number of years of useful life.
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A: Let's understand some basic Depreciation is an accounting method of allocating the cost of a…
Q: Equipment with a cost of $70,969.00, an estimated residual value of $6,221.00, and an estimated life…
A: cost = $70,969.00 estimated residual value = $6,221 estimated life = 11 years , depreciation done…
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A: Depreciation can be defined as the decline in the value of asset due to its usage in the business…
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A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: A machine that cost $ 20,000 has been depreciated on a straight line basis assuming a service life…
A: Annual Depreciation = (Cost of the assets - Salvage value) / life of the assets = ($20,000 - 0) / 10…
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A: The calculation of depreciation expense for the year eight, book value at the end of year seven and…
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A: Sound value of an asset is the depreciated replacement cost of the asset. This value differs from…
Q: An equipment costing P500,000.00 has a salvage value of P56,992.00 Determine its book value after…
A: Every fixed asset loses its value over a period. Depreciation is being recorded on the cost of…
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A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
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A: In Sinking fund method, the depreciation of the asset is calculated to accumulate the amount of…
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A: Depreciation is a method to represent the reduction in value of the asset. This is a way that is…
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A: Answer a Depreciation =Cost - Residual valueUseful life=$843,750-$168,75027=$25000 per year The…
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A: There are different types of depreciation methods In this question, it has to be depreciation using…
Q: when originally purchased, a vehicle costing 23,760 had an estimated useful life of 8 years and an…
A: The depreciation expense is the decrease in the value of fixed assets with the passage of time.
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A: The depreciation is a decline in the value of tangible assets over their useful life. it is a…
Q: A machine with a cost of $65,400 has an estimated residual value of $4,262 and an estimated life of…
A: Dpreciation rate=1Useful life×2=15×2=40%
Q: A machine with a cost of $135,000 has an estimated residual value of $15,000 and an estimated life…
A: Machine Hour Method: Under this method, depreciation is calculated on the basis of hours that the…
Q: An asset with a cost of £250,000 and no salvage value were originally depreciated on a straight-line…
A: Depreciation is a non-cash outlay that is to be reported in the books so as to show the regular wear…
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Q: Anew barcode reading device has an installed cost basis of $21,700 and an estimated service life of…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
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A: Depreciation expense is the amount that a company's assets are depreciated for a single period,…
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A: Depreciation is the reduction in the book value of asset during each financial year. It is done to…
Q: depreciation expense for year 3 would be
A: Compute the depreciation expense per year.
Q: A machine cost RO 50,000 in 2006. Its estimated salvage value is RO 3800 and its expected life is…
A: Machine Cost = RO 50,000 Estimated Salvage Value = RO 3800 Years = 7 Depreciation for year 1 =…
Q: The purchase price of a unit of equipment is $486,500. The éstimated useful life is 5 yr with no…
A: Straight line method: Depreciation = (Cost of asset - Salvage value) / Life Depreciation = ($486,500…
Q: A machine with a cost of $57,300 has an estimated residual value of $3,956 and an estimated life of…
A: Depreciation is a method which reallocates the cost of a tangible asset over its useful lifeIn…
Q: ABC Company finds its records are incomplete concerning a piece of equipment used in its plant.…
A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…
Q: A machine with a cost of $66,200.00 has an estimated residual value of $3,201.00 and an estimated…
A: Working Notes: Original cost = $ 66200 Residual value = $ 3201 Estimated life = 5 years or 18256…
Q: A machine with a cost of $75,000 has an estimated residual value of $5000 and an estimated life…
A: Depreciation using Double Declining Balance Method Double Declining Balance Depreciation Rate = 2 x…
Q: A machine with a cost of $58,300.00 has an estimated residual value of $4,902.00 and an estimated…
A: Depreciation expense = Book Value at beginning of year x Double declining balance method rate(DDB…
Q: If the total depreciation on year 7 is 34,582 and the book value on the same year is 181,631 and the…
A: Straight-line method SLM is computed by dividing the discrepancy between the cost of an asset and…
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A: Straight-line method - It is a method in which the same depreciation is charged year after year from…
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A: Depreciation has considered a reduction in the value of assets due to the uses of that asset. We can…
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A: Original value 120,000 Salvage value 120,000*13/100 15,600 Total life 12 years Book value…
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A: Depreciation is the amount of charge against the cost of a fixed asset to meet the obsolescence…
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A: Units-of-production method: The depreciation method which assumes that the consumption of economic…
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- Which of the following is not true about the MACRS depreciation system: A salvage value must be determined before depreciation percentages are applied to depreciable real estate. Residential rental buildings are depreciated over 27.5 years straight-line. Commercial real estate buildings are depreciated over 39 years straight-line. No matter when during the month depreciable real estate is purchased, it is considered to have been placed in service at mid-month for MACRS depreciation purposes.To test your formulas, assume the machine purchased had an estimated useful life of three years (20,000, 30,000, and 50,000 hours, respectively). Enter the new information in the Data Section of the worksheet. Does your depreciation total 320,000 under all three methods? There are three common errors made by students completing this worksheet. Lets clear up two of them. One, an asset that has a three-year life should have no depreciation claimed in Year 4. This can be corrected using an =IF statement in Year 4. For example, the correct formula in cell C32 is =IF(B32D9,0,(D7D8)/D9) or =IF(B32D9, 0, SLN(D7, D8, D9)). You may wish to edit what you have already entered rather than retype it. Two, as mentioned in requirement 2, the double-declining-balance calculation needs to be modified in the last year of the assets life. Assuming you have already modified the formula for Year 4 (per instructions in step 2), alter the formula for Year 3 also. If you corrected any formulas, test their correctness by trying different estimated useful lives (between 3 and 8) in cell E9. Then reset the Data Section to the original values, save the revised file as DEPREC2, and reprint the worksheet to show the correct formulas. The third common error doesnt need to be corrected in this problem. The general form of the double-declining-balance formula needs to be modified to check the net book value of the asset each year to make sure it does not go below salvage value. =DDB does this automatically, but if you are writing your own formulas, this gets very complicated and is beyond the scope of the problem.Assume that instead of a zero salvage value as shown above the machines has a salvage value if $27,000 at the end of its three year life.
- An automated assembly robot that cost $400,000 has a depreciable life of five years with a $100,000 salvage value. If the MACRS depreciation rates for years 1, 2, and 3 are 20.00, 32.00, and 19.20%, respectively, what is the book valueof the robot at the end of year three?A machine with a cost of $474000 has an estimated salvage value of $24000 and an estimated useful life of 5 years or 10000 hours. It is to be depreciated using the units-of-activity method of depreciation. What is the amount of depreciation for the second full year, during which the machine was used 5000 hours?A new barcode reading device has an installed cost basis of $22,820 and an estimated service life of nine years. It will have a zero salvage value at that time. The 150% declining balance method is used to depreciate this asset. What is the gain (or loss) on the disposal of the device if it is sold for $3,200 after eight years?
- An electronics balance costs P87,000 and has an estimated salvage value of P8,000 at the end of its 12 years lifetime. What would be the depreciation after three years, using the sum of the years digit in solving for the depreciation?Equipment costing $78000 with a salvage value of $18000 and an estimated life of 8 years has been depreciated using the straight-line method for 2 years. Assuming a revised estimated total life of 5 years and no change in the salvage value, what would be the depreciation expense for year 3?If the total depreciation on year 7 is 34,582 and the book value on the same year is 181,631 and the machine has a life of 14 years, what is the salvage value of the machine using SLM? Write your answer in two decimal places
- A new barcode reading device has an installed cost basis of $20,670and an estimated service life of seven years. It will have a zero salvage value at that time. The 200% declining balance method is used to depreciate this asset. a. What will the depreciation charge be in year seven? b. What is the book value at the end of year six? c. What is the gain (or loss) on the disposal of the device if it is sold for $1,000 after six years? a. The depreciation charge in year seven will be ... nothing. b. The book value at the end of year six is ... nothing. c. The ... loss gain on the disposal of the device if it is sold for $1,000 after six years is .. nothing.Equipment with a cost of $662000 has an estimated salvage value of $50000 and an estimated life of 4 years or 13600 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 for 3400 hours?A machine with a cost of $66,200.00 has an estimated residual value of $3,201.00 and an estimated life of 5 years or 18,256 hours. What is the amount of depreciation for the second full year, using the double declining-balance method? Select the correct answer. a.) $15,888.00 b.) $26,480.00 c.) $13,240.00 d.) $25,199.60
