A plant Asset acquired on January 2 at a cost of 275,000 has an estimated useful life of 10 years. Assuming that it will have no residual value, determine the depreciation for each of the first Five years a.      By the Straight Line Method b.     By the Double Declining Balance Method c.      By the Sum of years digits Method

Q: Equipment was acquired at the beginning of the year at a cost of $562,500. The equipment was…

A: Straight-Line Method: This technique of calculating depreciation and amortization, which is the…

Q: What is the solution and/or answer to this problem? Depreciation by Two Methods; Sale of Fixed…

A: Depreciation: Depreciation is a method that reallocates the cost of tangible assets over their…

Q: A building acquired at the beginning of the year at a cost of $1,630,000 has an estimate residual…

A: a) Computation of  Depreciable cost is as follows:=Cost -Residual value=$1630000-$340000=$1290000

Q: 1. A plant asset purchased for $500,000 has an estimated life of 10 years and a residual value of…

A: This question deals with the concept of depreciation. Depreciation is a reduction in value of asset…

Q: A building acquired at the beginning of the year at a cost of $93,200 has an estimated residual…

A: Depreciation is the expense which is reported in the income statement under the expenses head. It is…

Q: T, F. Intangible assets differ from property, plant and equipment assets because they lack physical…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: Disposal of Fixed Asset Equipment acquired on January 8, 20Y1, at a cost of $607,500, has an…

A: Book value is the value of an asset according to its balance sheet account balance. For assets, the…

Q: A computer system acquired on January 1 at a cost of $243,000 has an estimated useful life of ten…

A: Straight-line depreciation method: The depreciation method which assumes that the consumption of…

Q: A secondhand bulldozer acquired at the beginning of the fiscal year at a cost of $56,000 has…

A:

Q: A Kubota tractor acquired on January 9 at a cost of $252,000 has an estimated useful life of ten…

A: a. Compute depreciation expense for first two years using straight line method as shown below:…

Q: A Kubota tractor acquired on January 8 at a cost of $36,000 has an estimated useful life of 10…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/10 years) x 2 = 20%

Q: An asset was purchased for $101,000 on January 1, Year 1 and originally estimated to have a useful…

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

Q: A Caterpillar tractor acquired on January 12 at a cost of $216,000 has an estimated useful life of…

A: Straight line method of depreciation: This is one of the methods to calculate the depreciation on…

Q: Kubota tractor acquired on January 8 at a cost of $36,000 has an estimated useful life of 10 years.…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: Equipment was acquired at the beginning of the year at a cost of $76,260. The equipment was…

A: Depreciation Expense = [Cost of the asset – Salvage Value] / Useful life Gain (Loss) on sale of the…

Q: A storage tank acquired at the beginning of the fiscal year at a cost of $172,000 has an estimated…

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

Q: A building acquired at the beginning of the year at a cost of $3,585,000 has an estimated residual…

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

Q: Equipment acquired at the beginning of the year at a cost of $470,000 has an estimated residual…

A: Depreciable cost = cost of asset - residual value

Q: A Kubota tractor acquired on January 8 at a cost of $297,000 has an estimated useful life of 10…

A: Depreciation is a method which reallocates the cost of a tangible asset over its useful lifeIn…

Q: Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $662,500. The…

A: Depreciation is a reduction in the value of assets over time due to normal wear and tear,…

Q: A Kubota tractor acquired on January 8 at a cost of $36,000 has an estimated useful life of 10…

A: Assets: Assets are the resources of an organization used for the purpose of business operations.…

Q: A storage tank acquired at the beginning of the fiscal year at a cost of $75,000 has an estimated…

A: (a)Calculate  the amount of annual depreciation by the straight-line method:

Q: An asset was purchased for $112,000 on January 1, Year 1 and originally estimated to have a useful…

A: Accumulated depreciation, January 1, Year 3 = [($112,000 - $10,000) / 11 years] x 2 years =…

Q: Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $612,500. The…

A: Depreciation: Depreciation is defined as a reduction in the value of assets that occurs over time as…

Q: An asset was purchased for $138,000.00 on January 1, Year 1 and originally estimated to have a…

A:

Q: A Kubota tractor acquired on January 8 at a cost of $85,000 has an estimated useful life of 10…

A: Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of…

Q: Equipment was acquired at the beginning of the year at a cost of $650,000. The equipment was…

A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…

Q: A storage tank acquired at the beginning of the fiscal year at a cost of $586,000 has an estimated…

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

Q: Equipment with the cost of $160,000, and estimated residual value of $40,000, and an estimate life…

A: Depreciation is a charge against profit due to wear and tear of assets due to the factor of time.

Q: An asset was purchased for $143,000 on January 1, Year 1 and originally estimated to have a useful…

A: Ans. Depreciation will be calculated on the basis of useful number of years and residual value. If…

Q: A Kubota tractor acquired on January 8 at a cost of $80,000 has an estimated useful life of 4 years.…

A: Depreciation under straight line method can be calculated by: = (Cost of asset - Salvage value) /…

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…

Q: A building acquired at the beginning of the year at a cost of $93,200 has an estimated residual…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: A building acquired at the beginning of the year at a cost of $104,000 has an estimated residual…

A: Accounting defines depreciation as the systematic reduction of a fixed asset's reported cost until…

Q: A piece of heavy equipment acquired on January 1 at a cost of $180,000 has an estimated useful life…

A: Under Straight-line method Yearly depreciation is calculated using the below formula  Depreciation =…

Q: A building acquired at the beginning of the year at a cost of $98,800 has an estimated residual…

A: The double declining balance  rate = (1/useful years) *2 *100 The double declining depreciation =…

Q: a.  Determine the amount of annual depreciation by the straight-line method. $ b.  Determine the…

A: Given: Cost Of tank 95000 Residual Value 5000 Life Of Tank 25   Method Of Depreciation    Straight…

Q: An asset was purchased for $126,000.00 on January 1, Year 1 and originally estimated to have a…

A: Depreciation ( Straight Line Method) = Total Cost of Assets - Salvage Value / No. Of useful life

Q: Equipment was acquired at the beginning of the year at a cost of $78,840. The equipment was…

A: Formula: Straight line method = ( Asset cost - Salvage value ) / Useful life

Q: Equipment acquired at the beginning of the year at a cost of $540,000 has an estimated residual…

A: Double Declining Balance rate = 2 x  Depreciation per AnnumCost of Equipment The…

Q: A building acquired at the beginning of the year at a cost of $88,400 has an estimated residual…

A: The double-declining-balance is a depreciation method. This method is more appropriate for assets…

Q: Computer equipment was acquired at the beginning of the year at a cost of $70,800. It had an…

A: Solution:-a Calculation of Depreciation cost as follows under:-

Q: A computer system acquired on January 1 at a cost of $35,000 has an estimated useful life of five…

A: Solution a: Straight line method: Depreciation first year = (Cost - residual value) / useful life =…

Q: Equipment was acquired at the beginning of the year at a cost of $78,660. The equipment was…

A: Given,  Cost of asset = $78,660 Residual value = 7,980 Useful life = 6 years Depreciation method -…

Q: A building acquired at the beginning of the year at a cost of $112,000 has an estimated residual…

A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear.There are…

Q: A storage tank acquired at the beginning of the fiscal year at a cost of $129,600 has an estimated…

A: Straight line depreciation=Cost of the asset-Residual valueEstimated life of the…

Q: Computer equipment was acquired at the beginning of the year at a cost of $59,800 that has an…

A: Under straight line method, assets get depreciated every year with the same amount until it reaches…

Q: A property with a depreciable cost of ₱5,600,000 with original residual value of ₱200,000 after 15…

A: Depreciation is the operating expense of the business which incurred every year on the use of the…

Q: A building acquired at the beginning of the year at a cost of $1,630,000 has an estimated residual…

A: Since you have asked multiple questions, we will solve the first three questions for you. If you…

Q: An asset was purchased for $115,000 on January 1, Year 1 and originally estimated to have a useful…

A: Annual Depreciation (Straight line method) = (Cost of the assets - Salvage value) / Life of 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.