A set of office equipment costs $80,000 and has a useful life of 8 years. Its estimated market value at the end of the 8th year is $2,000. Determine the depreciation amount on the 5th year and the book value at the end of the 3rd year using: Declining Balance Method with Switchover to SL MACRS GDS (assume that the assets will be disposed of on the 3rd year)

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A: Compute the value depreciation under straight line method.

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A: Straight line depreciation rate=100%Estimated useful life=100%3 years=33.33%

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A: Cost = $4000 n = 10 years Salvage value = 0

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A: Depreciation The purpose of calculating the depreciation cost of the assets to determine the actual…

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

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A: Following are the calculation of depreciation rate under the declining method:

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A: Depreciation is the reduction in the value of asset due to normal wear and tear, passage of time,…

Q: If 40,000 units were produced in 20X1 and 60,000 were produced in 20X2, what amount of accumulated…

A: The correct option is  C. $150,000

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A: Double Declining Balance Depreciation Method also is known as DDB depreciation, is the second…

Q: A printing machine initially costs ₱179,000. It can be sold for ₱15,000 at the end of its 10-year…

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

Q: Liquior Company has an equipment costing P700,000 with an estimated residual value of P70,000 and an…

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

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A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/4 years) x 2 = 50%

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Q: On the first day of its fiscal year, Spearhead Company purchased a new computer systemfor a total…

A: Methods of Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset…

Q: Golden Sales has bought $135,000 in fixed assets on January 1st associated with sales equipment. The…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period. Example:…

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A: Solution : We Can Calculate the WDV Deprecation rate by following Formulas.                 WDV Rate…

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A: A non-current asset is a fixed asset that is expected to be in use for a long-term period, i.e.,…

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

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A: Depreciation is a non-cash expense which is incurred due to a continuous use of fixed asset.…

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A: Working Note #1 Calculation of Profit/ loss on disposal of Equipment: Cost of equipment…

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

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A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/8 years) x 2 = 25%…

Q: A small truck is purchased for $17,000. The truck is expected to be of use to the company for 6…

A:

Q: Explain why fixed assets are depreciated.

A: Fixed assets are those assets that are held for more than one accounting period and provide the…

Q: The Donut Stop acquired equipment for $13,000. The company uses straight-line depreciation and…

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

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A: Double-declining-balance method: The depreciation method which assumes that the consumption of…

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A: Straight line dep. rate = 1 / Useful life   Difference in depreciation ($) = MACRS depreciation -…

Q: Parker, Inc purchased new equipment for $57,400. The new equipment would save on operating costs…

A:

Q: Kenzie Company purchased a 3-D printer for $591,000. Although this printer is expected to last for…

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

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A:

Q: Company purchases a machine for $4,000,000, The machine has a residual value of $200,000. The…

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Q: A plant asset cost R.O.192,000 and is estimated to have a R.O.24,000 residual value at the end of…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/8 years) x 2 = 25%…

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A: Given information :

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…

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A: The Accumulated depreciation is calculated as sum of Depreciation expense for past years. The book…

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A: It is pertinent to note that residual value, Useful life are accounting estimates that are made…

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

Q: Jay Corp. bought a machine for $15,000. The machine is expected to produce 10,000 units. The machine…

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

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: Kenzie Company purchased a 3-D printer for $444,000. Although this printer is expected to last for…

A: Fixed assets: These are the assets which were used in the business for more than one year. These…