A printing equipment costs P73,500 has a life expectancy of 8 years and has a salvage value of P3,500 at the end of its life. The book value at the end of “x” years is equal to P38,500. Using straight line method of depreciation, solve for the value of “x”

A printing equipment costs P73,500 has a life expectancy of 8 years and has a salvage value of P3,500 at the end of its life. The book value at the end of “x” years is equal to P38,500. Using straight line method of depreciation, solve for the value of “x”

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 3EA: Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is...

See similar textbooks

Related questions

Q: Equipment costing $78000 with a salvage value of $18000 and an estimated life of 8 years has been…

A: Depreciation as per straight-line method = (Cost - salvage value)/Useful life

Q: A new CNC machine has an installed with a cost basis of $35,000 and an estimated service life of…

A: Given: Cost of asset = $35,000 Life = 7 years

Q: An equipment worth Php 350000 has an anticipated salvage value of Php (15000x8) at the end of its…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/5 years) x 2 = 40%

Q: A machine costs P1,500,000. It has a salvage value of P600,000 at the end of its economic life.…

A: Let the economic life = n years Machine cost (F) = P 1500000 Salvage value (S) = P 600000 Book value…

Q: An asset costs R10 000 and has a useful life of five years and a residual value of R1 000. Which one…

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

Q: A machine costs RO 40,000 with a salvage value of RO 20,000. The expected life of the machine is…

A: Under units of production method, depreciation is calculated on the basis of units produced during…

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: 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 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: An asset was purchased six years ago at a cost of P7,000. It was estimated to have a useful life of…

A: Given that: Original cost = P7000 Salvage Value = 300

Q: A machine with a cost of $560,000 has an estimated salvage value of $8)0,000 and an estimated useful…

A: Given data, Asset cost =$560,000 Salvage value =$80,000 Useful life =40,000 hours The machine was…

Q: A new barcode reading device has an installed cost basis of $21,490 and an estimated service life of…

A: The calculation of depreciation expense for the year eight, book value at the end of year seven and…

Q: An earth moving equipment that cost P 90,000 will have an estimated salvage value of P18,000 at the…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Equipment with a cost of $477400 has an estimated salvage value of $55000 and an estimated life of 4…

A: Depreciation is the way of allocating the cost of the assets over the life of the asset, it can be…

Q: The cost of an asset is $1,050,000, and its residual value is $280,000. Estimated useful life of the…

A: Depreciation means the amount expense out of cost of assets due to normal usage of assets , normal…

Q: 1. The machine costs P210 000 and expected to have a salvage value of P15 000 after 12 years.…

A: Given information, Cost of the machine =P210,000 Useful life =12 years Salvage value =P15,000…

Q: Equipment with a cost of $950000 has an estimated salvage value of $30000 and an estimated life of 4…

A: Depreciation: It refers to a gradual decrease in the fixed asset’s value because of obsolescence,…

Q: An earth moving equipment has a first cost of P 25,000, estimated life of 6 years, with no salvage…

A: In Sinking fund method, the depreciation of the asset is calculated to accumulate the amount of…

Q: Calculate the depreciation using the Straight-Line Method for a company that buys a piece of…

A: Depreciation is the allocation of cost of assets over the useful life of the asset. Under straight…

Q: An equipment costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the…

A: Answer - Given, Asset Cost - 250000 Salvage Value - 30000 Estimated Life - 15 Years Rate of…

Q: ABC Company has an equipment costing P 700,000 with an estimated residual value of P 70,000 and an…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: A machine has an initial cost of P110,634.945 and a salvage value of P22,728.983 after 10 years.…

A: Depreciation per year = (Initial cost - Salvage value) / Useful life Depreciation per year =…

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 depreciable property costing P2,600,000 with original scrap value of P200,000 after 15 years, had…

A: Here discuss about the details of the annual depreciation expenses which are incurred after the…

Q: A plant asset cost P96,000 and is estimated to have a P12,000 salvage value at the end of its 8-year…

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

Q: construction equipment costs 700,000 pesos and will have a salvage value of 30% of its original cost…

A: Sum of useful years = 4+3+2+1 = 10

Q: A machine costs P37,783, last 14 years and has a salvage value at the end of life of P2,229.…

A: The depreciation is a decline in the value of tangible assets over their useful life. it is a…

Q: A machine cost RO 50,000 and its estimated salvage value is RO 5000 and its expected life is eight…

A: Given Cost = RO 50,000 Salvage Value = RO 5000

Q: A certain machine has a first cost of P 14,000, a ife of 8 years with a salvage value of P 10,000 at…

A: Depreciation means the expenses written off from value of fixed assets due to natural wear and tear…

Q: Equipment with a cost of $662000 has an estimated salvage value of $50000 and an estimated life of 4…

A: Depreciation is the method of allocating the cost of a asset over its useful life. Depreciation…

Q: An equipment has a total depreciation of P35,000 at the end of first year. If the First cost is…

A: Double declining method is a method of calculating accelerated depreciation in which the…

Q: A construction equipment costs P180,000. It has a salvage value of P15,000 at the end of its life of…

A: Given: Equipment cost = P180,000 Salvage value = P15,000 Life = 12 years

Q: A machine has an initial cost of P120,243.85 and a salvage value of P14,751.13 after 9 years. What…

A: The depreciation using the straight line method of accounting is computed by dividing the initial…

Q: depreciation expense for year 3 would be

A: Compute the depreciation expense per year.

Q: A new machine costs $12,000 and has a $1300 salvage value at the end of its 8-year useful life.…

A: Depreciation:-It is an expense incurred in the normal use of fixed assets. The whole value of the…

Q: A printing equipment cost P500,000 and the cost of handling and installing is P30,000. The life of…

A: Depreciation is charged to record reduction in value of fixed assets over the period of time.…

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: The cost of a machine is RO 18000 with a salvage value of RO 3000 at the end of its six years of…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

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: A machine with a cost of $50,000 has an estimated residual value of $5,000 and an estimated useful…

A: Given the following information: Cost of the machine: $50,000 Residual value: $5,000 Estimated…

Q: A company purchased a CNC machine for $40,000. It has a salvage value of $4,000 at the end of its…

A: Ans. The useful number of years of the machine = 10 years Therefore, the straight line depreciation…

Q: ABC Company has an equipment costing P 700,000 with an estimated residual value of P 70,000 and an…

A: If the upgrading costs improved the current condition of asset and provide extra benefit in future…

Q: i. Calculate the yearly depreciation for a machine that has an expected useful life of 10 years. The…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: A certain equipment costs P7,000 has an economic life of “n” years and a salvage value of P350 at…

A: Sum of Years of Digit is one of the depreciation methods which is used internationally by the…

Q: The cost of a machine is 18,000 with a salvage value of RO 4270 at the end of its life of five…

A: The answer is option (b.) [RO 3375] Refer step 2 for explanation

Q: An engineer bought equipment for P500,00O. HE spent an additional amount of P30,000 for installation…

A: Total cost of the equipment = P500,000 + P30,000 = P530,000 Annual depreciation = Total…

Q: A machine. purchased for $50,000, has a depreciable life of five years. It willhave an expected…

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

Q: ABC Company has an equipment costing P 700,000 with an estimated residual value of P 70,000 and an…

A: Costs which are incurred to improve the quality of the asset's output shall be capitalized and form…

Q: An asset was purchased six years ago at a cost of P7,000. It was estimated to have a useful life of…

A: Sunk cost is the expense which had been incurred but not recovered yet. Cost of equipment or lease…

Question

A printing equipment costs P73,500 has a life expectancy of 8 years and has a
salvage value of P3,500 at the end of its life. The book value at the end of “x” years is equal to P38,500. Using straight line method of depreciation, solve for the value of “x”

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Formula to calculate depreciation under straight line method

VIEW

Step 2 Calculation of value of X

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

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?
Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
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.
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.
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.
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.
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 6â€“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.
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.
A fixed asset with a 5-year estimated useful life is sold during the second year. How would the use of the straight-line method of depreciation instead of the double-declining-balance method of depreciation affect the amount of gain or loss on the sale of the fixed asset?
When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.