An asset that had a first cost of $80,000 was depreciated according to the MACRS method over a 5-year period. At the end of year 4, it was replaced with a more-advanced system and sold for $15,000. Determine if depreciation recapture or a capital loss was present and, if so, how much.

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: 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: Concord Corporation constructed a building at a cost of $13650000. Weighted-average accumulated…

A: depreciation expense under SLM method = (Cost incurred +avoidable interest cost - salvage value) /…

Q: g the declining balance method, determine the depreciation charged for 2004 and the book value at…

A: a. Sum of year digit method:

Q: depreciation to be charged against the machine during each of the remaining years of its useful…

A: Accounting for change in accounting estimate is envisaged in IAS 8 It is pertinent to note that the…

Q: Computer equipment was acquired at the beginning of the year at a cost of $54,427 that has an…

A: Depreciation is charged on the depreciable fixed assets based on their useful life. Salvage value is…

Q: A plant Asset acquired on January 2 at a cost of 275,000 has an estimated useful life of 10 years.…

A: SOLUTION- A                                                 STRAIGHT LINE METHOD   DEPRECIATION =…

Q: An asset that is book-depreciated over a 5-year period by the straight-line method has BV3 = ₱…

A: Depreciation Expense Per Year P26,000 Accumulated Depreciation at Year 3 (P26,000 * 3) P78,000

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: 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: At the beginning of its fiscal year, Koeplin Corporation purchased equipment for $50,000. At the end…

A: Here, difference between the fair value and cost of asset is treated as depreciation.  Depreciation…

Q: A central air conditioning unit was installed on January 1, 2000 at an initial cost of P650,000 and…

A: Depreciation can be defined as the decline in the value of asset due to its usage in the business…

Q: An asset was purchased for $124,000 on January 1, Year 1 and was originally estimated to have a…

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

Q: A building was purchased for $400,000 and depreciated for 10 years on a straight-line basis under…

A: Depreciation formula as per straight-line basis: Annual depreciation=Cost-Salvage valueUseful Life

Q: An asset owned by Photon Environmental was book-depreciated by the straight line method over a…

A: a.  Salvage value is calculated as follows: The following formula is used in the calculation of the…

Q: Concord Corporation constructed a building at a cost of $13650000. Weighted-average accumulated…

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

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: Equipment was acquired at the beginning of the year at a cost of $537,500. The equipment was…

A: a. Annual depreciation = (cost of the assets - residual value) / life of the assets =…

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

A:

Q: when originally purchased, a vehicle costing 23,760 had an estimated useful life of 8 years and an…

A: The depreciation expense is the decrease in the value of fixed assets with the passage of time.

Q: An asset has a depreciable base of $80,000 and an estimated useful life of 4 years. In the first…

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

Q: 0,000 with original residual value of ₱200,000 after 15 years of useful life, had been revalued at a…

A: 1.The useful life of an asset is an estimation of the length of time the asset can reasonably be…

Q: Bob Co purchased a building for $50,000 and began depreciating assuming a salvage value of $5,000…

A: Depreciation Expense = Cost of asset - Salvage valueuseful life When salvage value is $ 5,000 and…

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 $104,000 has an estimated residual…

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

Q: Computer equipment was acquired at the beginning of the year at a cost of $71,900. It had an…

A: Depreciation is decrease in an asset's value may be caused by a number of other factors such as…

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

A: a. Compute the depreciation for the first year: Cost of the Equipment $612,500 Less: Residual…

Q: Consider a 5-year MACRS asset, which was purchased at $140,000. The asset was disposed of at end of…

A: MACRS depreciation is the tax depreciation  framework utilized in the United States. MACRS is an…

Q: An asset purchased for $50,000 has a depreciable life of five years, and it has a terminal book…

A: Given: Cost of asset= $50,000 Life 5 years Salvage value = $5,000

Q: An asset was purchased for $103,000 on January 1, Year 1 and originally estimated to have a useful…

A: Depreciation is a non-cash expense which is recorded to report the regular wear and tear of an…

Q: Company A bought a building for OMR.73,000, which has the expected useful life of eight years and a…

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

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: 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: 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: 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: Consider a 5-year MACRS asset, which was purchased at $140,000. The asset was disposed of at end of…

A: The Modified Accelerated Cost Recovery System (MACRS) serves as a most appropriate method of…

Q: Determine the second-year depreciation using the straight-line method.

A: Depreciation is a periodical expenses charged to the profit and loss account over the asset life.…

Q: Computer equipment was acquired at the beginning of the year at a cost of $60,093 that has an…

A: Formulas: Depreciation = (Cost of asset - residual value) / Life of the asset

Q: An asset owned by Photon Environmental was book depreciated by the straight line method over a…

A: Depreciation: It is gradual fall in the value of the asset due to its normal usage in the production…

Q: The double-declining-balance method is to be used for an asset with a cost of S88,000, an estimated…

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

Q: The cost of asset is $100,000 and the salvage value at the end of its useful life of 8 years is…

A: Depreciation: Depreciation Cost is the cost that is allocated over its life and it is charged as an…

Q: Computer equipment was acquired at the beginning of the year at a cost of $57,000 that has an…

A: The following calculations are done to evaluate the depreciation expense incurred for the 2nd year…

Q: Beckman Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $164,0000. The…

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

Q: A building acquired at the beginning of the year at a cost of $1,450,000 has an estimated residual…

A: Depreciation is a non-cash expense which is recorded in the books to report the regular usage of the…

Q: A company used straight-line depreciation for an item of equipment that cost $12,000, had a salvage…

A: Given the following information: Method of depreciation: Straight line method Useful life of…

Q: A building acquired at the beginning of the year at a cost of $148,700 has an estimated residual…

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

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…