ABC company purchased a machine use to their business whose first cost is P 500,000 with an estimated life of 10 years. The estimated salvage value of the equipment at the end of its lifetime is P 25,000. a.Determine the depreciation charge and book value at the end of various years using the straight line method of depreciation.  b. 2.b calculate the depreciation and the book value for period 5 using the declining balance method of depreciation by assuming 0.2 for K. *

Q: Farmer Company purchased equipment on January 1, Year 1 for $106,000. The equipment is estimated to…

A: Initial straight-line depreciation = (Price - Salvage value) / Useful life = ($106,000 - $15,000) /…

Q: An equipment  was purchased for P500,000.00  and the same has an economic life of  5 years,  and…

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

Q: 1. Compute the amount of depreciation expense for the year ended December 31,20X1, using the…

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

Q: The Company acquireda machine on January 1, Year 1. The machine cost $500,000 and had an estimated…

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

Q: depreciation expense on this asset

A: Depreciation expense = (Cost - Savage value) * Hours used in current year/Estimated useful life in…

Q: Lima Enterprises purchased a depreciable asset for $22,000 on April 1, Year 1. The asset will be…

A: Value of depreciable asset =$22000 Salvage value = $2000 Life of asset = 4 Years

Q: On January 1, 20X4, XYZ Company purchased a truck for $120,000. The truck is expected to have an…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: Mohr Company purchases a machine at the beginning of the year at a cost of $24,000. The machine is…

A: Calculate the year 1 depreciation as follows: Year 1 depreciation = 2*(Book value of asset /5) Year…

Q: On January 1, Year 1, Pearson Moving Company paid $41187 cash to purchase a truck. The truck was…

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

Q: (a) A car manufacturing company purchased an asset for welding and put it into service. Its initial…

A: Solution Working note Under straight line method Annual depreciation       =cost – residual value /…

Q: On January 1, Year 1, Martin Mowing Company paid $64,000 to purchase a truck. The truck was expected…

A: Depreciation is the expense which is non-cash in nature and it is reported on the income statement…

Q: On January 1, Year 1, Hills purchased equipment for $350,000. The equipment had an estimated useful…

A: Depreciation is a method of distributing the cost of a physical or physical object over its useful…

Q: Oriole Company acquires a delivery truck at a cost of $82,000. The truck is expected to have a…

A: Double-declining balance method (Accelerated method): In this method of depreciation, the…

Q: Duncan Company purchased a machine that cost $57,590, has an estimated residual value of $2,452, and…

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

Q: Slovac Company purchased a machine that has an estimated useful life of eight years for $7,500. Its…

A: Determine the depreciation rate applied each year.

Q: The company purchased a computer system at a cost of $100,000. The estimated useful life is 4 years,…

A: Double declining depreciation rate = Straight line depreciation rate x 180% Depreciation expense for…

Q: A company purchased an equipment for $25,000. The equipment had estimated useful life of 10 years…

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

Q: Determine the depreciation charge and book value at the end of each year using (i)…

A: Sum of year digit method: In this method asset's expected useful life is considered for the…

Q: Marissa's company recently purchased a depreciable asset for $190,000. The estimated salvage value…

A: Depreciation is an outlay reported in the books of a business entity to report the regular usage of…

Q: Beckman Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $152,000. The…

A: Book value of an asset is the value of asset which is reported on the financial statement of the…

Q: Use the following facts for questions 4-6. Rearden Co. has the plant assets shown below. Assume…

A: Sum of years  = 1+2+3+4+5+6+7+8                        = 36 years

Q: Mohr Company purchases a machine at the beginning of the year at a cost of $36,000. The machine is…

A: Answer)   Calculation of depreciation expense for the year 2 Depreciation for Year 2 = Book value at…

Q: Obaid Co. purchased equipment for $1,000,000 which was estimated to have a useful life of 15 years…

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

Q: On January 1, Year 1, Hills purchased equipment for $350,000. The equipment had an estimated useful…

A: Solution: Cost of equipment = $350,000 Estimated residual value= $50,000 Useful life = 10 years Rate…

Q: Evans Co purchased a machine with an estimated useful life of 10 years for $76,000 on 30 September…

A: We have the following information: Evans Co purchased a machine with an estimated useful life of 10…

Q: On July 1, 2010, GRACE Company purchased P2,160,000 snow-making equipment having an estimated useful…

A: Solution:   (a). Sum of the years Digits Method: 2010 2011 Equipment $2,160,000 $2,160,000…

Q: On January 1, Year 1, Missouri Company purchased a truck that cost $52,000. The truck had an…

A: Double declining balance method: A double-declining balance method is a form of an accelerated…

Q: On January 1, Year 1, Missouri Co. purchased a truck that cost $56,000. The truck had an expected…

A: Double declining rate = 1/Useful life*2

Q: On January 1, year 1, Bray Company purchased for P 240,000 a machine with a useful life of ten years…

A: Solution Concept When there is change in depreciation method and the change is justifiable , the…

Q: On January 1, Year 1, Hills purchased equipment for $350,000. The equipment had an estimated useful…

A: Double Declining balance method refers to accelerated method of Depreciation . Under this method…

Q: In January 20x8, Titania Co. purchased a machine that cost $80,000. The equipment is estimated to…

A: Depreciation (sum-of-the-years'-digits method) = (Cost of the assets - Salvage value) x Expected…

Q: Keller Industries uses the straight-line depreciation method. One asset had been purchased for…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: Byrd Inc., a calendar year-end company, purchased a machine on 1/1/X1 with the following attributes:…

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

Q: Company A bought a building for OMR 36,500, which has the expected useful life of four years and a…

A: Depreciation means the amount fixed assets written off due to normal wear and tear , normal usage ,…

Q: nstructions a. Determine the amount of depreciation expense by preparing the depreciation schedule…

A: Declining balance method: Declining balance method can be defined as one of the methods of…

Q: Colvin Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $100,000. The…

A: Calculate the year 1 depreciation for 3 months as follows: Year 1 depreciation = 2*(Book value of…

Q: Sandhill Company purchases equipment on January 1, Year 1, at a cost of $271,000. The asset is…

A: Sum of the years digits method is a depreciation method which records depreciation by taking year…

Q: Required: 1. Identify the method of depreciation and compute the depreciation expense for the third…

A:

Q: Noah Corp., a calendar year-end company, purchased equipment on 1/1/X1 with the following…

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

Q: Mohr Company purchases a machine at the beginning of the year at a cost of $24,000. The machine is…

A: Introduction: Depreciation: Decreasing the value of fixed assets over its useful life period called…

Q: MacGyver Company bought equipment on January 3, 20X1, for $52,000. At the time of purchase, the…

A: Depreciation under Straight line method : Under this Method an equal amount is charged as…

Q: On January 1, Year 1, Pearson Moving Company paid $41187 cash to purchase a truck. The truck was…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: COCOLOS Industries uses the straight-line depreciation method. One asset had been purchased for…

A: Straight-line Method: Depreciation and amortization, or the mechanism of depreciating and amortizing…

Q: On January 1, 20X4, XYZ Company purchased a truck for $120,000. The truck is expected to have an…

A: Depreciable cost=Purchase price-Salvage value=$120,000-$20,000=$100,000

Q: Corales Company acquires a delivery truck at a cost of $38,000. The truck is expected to have a…

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

Q: Oriole Company purchased a piece of equipment for $73,100. It estimated an 8-year life and a $2,700…

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

Q: Roma Inc purchased an asset worth $500,000.  The useful life of the assetwill be 8 years and it was…

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