A manufacturing company makes it a policy that for every new equipment purchased, the annual depreciation cost should not exceed 25% of the first cost at any time without salvage value. Determine the length of service
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A manufacturing company makes it a policy that for every new equipment purchased, the annual
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- A manufacturing company makes it a policy that for every new equipment purchased, the annual depreciation cost should not exceed 25% of the first cost at any time without salvage value. Determine the length of service life if the depreciation used is the SYD methodABC Company makes its policy that for every new piece of equipment purchased, the annual depreciation should not exceed 25% of the first cost at any time without salvage value. determine the length of service if the depreciation used is the Double Declining Balanced method.In Straight Line depreciation, the book value at the end of the depreciable life is equal to the salvage value used to calculate the yearly depreciation amount. TRUE OR FALSE
- An asset is purchased for P 120,000,00. Its estimated life is 10 years, after which it will be sold for P 12,000,00. Find the depreciation for the second year using SOYD method.ABC Corporation makes its policy that for every new equipment purchased, the annual depreciation should not exceed 20% of the first cost at any time without salvage value. Determine the length of service if the depreciation used is the SOYD Method.A printing machine initially costs ₱169,000. It can be sold for ₱15,000 at the end of its 12-year useful life.Using the double declining balance method, what is the depreciation charge of the machine at the end of the second year of its useful life?
- MalMax purchased a depreciable asset. What would be the difference in total assets at the end of the first year if MalMax chooses straight-line depreciation versus double-declining-balance depreciation?A company purchased an asset for P10,000 and plans to keep it for 20 years. If the salvage value is zero at the end of the 20th year, what is the depreciation in the third year? Use SOYD method.ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not excess 20% of the first cost at any time with no salvage value. Determine the length of the service life necessary if the depreciation used is the SYD method.
- Material-handling equipment used in the manufacture of grain products (MACRS-GDS 10-year property) is purchased and installed for $180,000. It is placed in service in the middle of the tax year. If it is removed just before the end of the tax year approximately 4.5 years from the date placed in service, determine the depreciation deduction during each of the tax years involved using MACRS-GDS allowances. ———————- Repeat the previous problem if the material-handling equipment is removed just after the tax year, again using MACRS-GDS allowances.An asset is purchased for P 9,000.00. Its estimated economic life is 10 years after which it will be sold for P 1,000.00. Find the depreciation in the first three years using sum of the years digit method.A machine costing P540,000 has a life expectancy of 12 years with a salvage value of P40,000. Using the Depreciation by Sinking Fund Method (SFM), what is the depreciation in the fourth year? Assume i=8%.