A machine costing P550,000 has an estimate scrap value of P85,000 at the end of its economic life of 8 years. Using the Double-Declining Balance Method of depreciation, what is its book value after four years of service? A. P130,518 B. P174,023 C. P216,217 D. P214,167
Q: A machine having a first cost P60,000 will be retired at the end of 8 years. Depreciation cost is…
A: Depreciation: It is the accounting method by which cost of a tangible or physical asset is…
Q: total cost of depreciation up to the time
A: In declining balance method of calculating depreciation, depreciation is computed each year by…
Q: ABC Corp uses the double declining balance method to depreciate a machine purchased on June 30, 20X1…
A: Depreciation: It is the reduction in the value of the asset over the period. This includes normal…
Q: A four-storey industrial building has a depreciated value of Pe90,000 at the start of 18th year and…
A: DOUBLE-DECLINING BALANCE METHOD: The double-declining method is the most commonly used method for…
Q: A machine with a cost of $67,600.00 has an estimated residual value of $3,188.00 and an estimated…
A: Double-declining balance method (Accelerated method): In this method of depreciation, the…
Q: A machine with a cost of $73,447.00 has an estimated residual value of $5,102.00 and an estimated…
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.
Q: A machine with a cost of $63,210.00 has an estimated residual value of $4,731.00 and an estimated…
A: Unit of Output method Unit of production depreciation, also called as activity method, calculates…
Q: A new truck costing $60,000 with a residual value of $6,000 has an estimated useful life of five…
A: Depreciation is charged on the assets indicating the decrease in the value of the asset.…
Q: A machine costing P480,000 is estimated to have a salvage value of 10% of the first cost when…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: A machine that cost $400,000 has an estimated residual value of $40,000 and an estimated usefullife…
A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/4 years) x 2 = 50%
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…
Q: A machine with a cost of $100 000 has an estimated residual value of $10 000 and an estimated life…
A: Solution.. Cost = $100,000 Salvage value = $10,000 Life = 45,000 hours over the estimated life…
Q: A machine with a cost of $50,000 has an estimated residual value of $3,743 and an estimated life of…
A: Depreciation records the usage of a fixed asset over a period of time and allocates its cost to the…
Q: A machine with a cost of $50,000 has an estimated residual value of $4,773 and an estimated life of…
A: Double Declining Balance Method Formula = Cost of the asset X Depreciation rate Depreciation rate…
Q: A machine with a cost of $70,887.00 has an estimated residual value of $4,907.00 and an estimated…
A: Depreciation represents the reduction in the value of the asset over a useful life of the asset. It…
Q: depreciation in year 3
A: units of production depreciation method : it is the one of the method for calculation of…
Q: A machine with a cost of $55,400 has an estimated residual value of $4,246 and an estimated life of…
A: The depreciation expense is charged on fixed assets as reduced value of the assets with the passage…
Q: A machine with a cost of $77,082.00 has an estimated residual value of $5,948.00 and an estimated…
A: Depreciation expense = [(Cost of machine - Residual Value) / Total Hours ] * Machine Hours used
Q: A machine cost P480, 000 and has a salvage value of 10% of its cost at the end of its life of 30,000…
A: Lets understand the basics. Depreciation is a reduction value of asset due to wear and tear,…
Q: A four-storey industrial building has a depreciated value of P890,000 at the start of 18th year and…
A: Current depreciated value = P890,000 After 17 years Salvage value =P50,000 Original Cost = To be…
Q: A machine with a cost of $67,523.00 has an estimated residual value of $4,597.00 and an estimated…
A: Given: It is to be depreciated by the units-of-production method. Units-of-Production Method…
Q: A machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of…
A: Depreciation rate = 1/Use full life Depreciation rate = 1/5 Depreciation rate = 20%
Q: A machine with a cost of $55,000 has an estimated residual value of $3,852 and an estimated life of…
A: A double-declining balance method is an accelerated depreciation method Using this method, the value…
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 company purchased factory equipment for $640000. It is estimated that the equipment will have a…
A: Double Declining Balance Methods = Original cost of Asset * Double declining rate Double declining…
Q: A new machine was bought for $9,000 with a life of six years and no salvage value. Its annual…
A:
Q: A SuperShip sorting machine that cost $6,000 with a useful life of five years and a residual value…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
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: A machine with a cost of $59,600 has an estimated residual value of $3,072 and an estimated life of…
A: In the double declining method of depreciation, the expenses of an asset are considered to be double…
Q: A new truck costing $60,000 with a residual value of $6,000 has an estimated useful life of five…
A: Working Note: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/5…
Q: A machine costing P480,000 is estimated to have a salvage value of 10% of the first cost when…
A: Answer) Calculation of Book value at the end of 5 year Year End Depreciation Expense…
Q: A delivery truck costing $18,000 is expected to have a $1,500 salvage value at the end of its useful…
A:
Q: new machine was bought for $8,500 with a life of eight years and no salvage value. Its annual…
A: For finding out equivalent annual cost we have to find present value FACTOR for ANNUITY and from…
Q: A printing equipment costs P73,500 has a life expectancy of 8 years and has a salvage value of…
A: Depreciation under straight line method = (Historical cost- Salvage value)/Useful life
Q: A machine that cost $105,000 has an estimated residual value of $5,000 and an estimated useful life…
A: Depreciation is charged against the value of fixed assets. It can be calculated by using the…
Q: What is the total depreciation for 2003 using Working Hours and Service Output Method?
A: Calculations of depreciation for 2003 using working hour method : Cost of machinery: 1,00,000 Scrap…
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: A truck with a cost of $80,000 has an estimated residual value of $15,000, has an estimated useful…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
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 $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: An equipment costs $8,000. It has an economic life of 8 years and a salvage value of $400 at the end…
A: The question is related to Depreciation Accounting. The details are given.
Q: industrial drilling machine has an initial cost of P385,000. Determine the following if the salvage…
A: Depreciation rate under double declining balance method = 2/useful life = 2/10 = 0.2 (or) 20% (in %…
Q: A certain machine has book value of P173,205.08 after 5 years and P82,187.59 after 8 years. The book…
A: The approach of reducing balance Depreciation also is characterized as the decreasing balance…
Q: A certain machine has book value of P173,205.08 after 5 years and P82,187.59 after 8 years. The book…
A: Suppose Depreciation Rate = r Value after 8 years = Value after 5 years x (1 - r)^3 Then, Initial…
Q: A company purchased factory equipment for $500000. It is estimated that the equipment will have a…
A: for First Year = 500000 x 25% = 125000 ( factory equipment * 25%) for Secnd year = (500000 -…
Q: An equipment costing P 390,000 has an estimated scrap value of P 25,000 at the end of its economic…
A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…
Q: A machine with a cost of $76,828.00 has an estimated residual value of $5,216.00 and an estimated…
A: Units-of-production method: The depreciation method which assumes that the consumption of economic…
A machine costing P550,000 has an estimate scrap value of P85,000 at the end of its economic life of 8 years. Using the Double-Declining Balance Method of
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- 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.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.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.
- 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?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.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.
- 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 6–10 (the entry will be the same for each of the five years).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.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.
- 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.Grandorf Company replaced the engine in a truck for 8,000 and expects the new engine will extend the life of the truck two years beyond the original estimated life. Related information is provided below. Cost of truck 65,000 Salvage value 5,000 Original estimated life 6 years The truck was purchased on January 1, 20-1. The engine was replaced on January 1, 20-6. Using straight-line depreciation, compute depreciation expense for 20-6.