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.
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ABC Corporation makes its policy that for every new equipment purchased, the annual
Determine the length of service if the depreciation used is the SOYD Method.
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- ABC 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.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.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 method
- 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.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 telephone company purchased microwave radio equipment for P6,000,000. Freight and installation charges amounted to 4% of the purchased price. If the equipment shall be depreciated over a period of 10 years with a salvage value of 8%. Determine the depreciation cost during the 5th year. Use the sum of the years digit method
- Which of the following is not true about depreciation? a. Depreciation is not a cash flow b. To be depreciable, an asset must have a life longer than 1 year c. A 5-year property will generate regular MACRS-GDS depreciation deductions in 6 fiscal years d. For MACRS-GDS an estimate of the salvage values is required.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.Under the General Depreciation System (GDS) of asset classification, any asset that is not in a stated class is automatically assigned a recovery period of: (a) 5 years (b) 7 years (c) 10 years (d) 15 years
- For the MACRS method of depreciation, identify (a) the six standardized recovery periods for personal property, (b) the two recovery periods for real property, (c) the assumed salvage value for personal property, and (d ) the default recovery period for an asset not in a stated GDS class.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 has purchased an equipment whose first cost is Rs. 1,50,000 with an estimated life of ten years. The estimated salvage value of the equipment at the end of its lifetime is Rs. 25,000. Determine the depreciation charge and book value at the end of various years through declining balance method of depreciation by assuming the value of K as 0.4. Also find the book value for period 7 separately by using the same method.