An company bought a telecommunication equipment for P280,000. Other expenses including installation amount to P40,000. The equipment is set to have a 12 years with the salvage value at the end of life of P30,000.   Determine the depreciation charge during the 4th year, depreciaton up to the 7th year and the book value at the end of the 10th years by (a) declining balance method (b) straight-line method (c) SYD method (d) double declining balance method and (e) sinkin

Q: Firm B purchased a machine at a price of 10,000 RMB. The life was estimated to be 5 years and the…

A: Double declining depreciation rate = (1/useful life) x 2            = (1/5) x 2            = 40%

Q: At the beginning of the year Joeker Company brought machinery under a contract that required a down…

A: Interest is paid on the loan amount sanctioned. Interest amount is said to be the cost of the funds…

Q: total accumulated depreciation to be reported in the balance sheet on December 2021.

A: Deprecation is a non cash expense referred to as reduction in the value of the asset due to its…

Q: Company E recently acquired an asset that has a cost basis of $11,000. The asset's estimated life is…

A: The accumulated depreciation by the end of the second year if the sum-of-years digits depreciation…

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: d) Oak Ltd purchased a machine for £40,000. At the end of Its Use the amount received on sale was…

A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…

Q: Company bought a new equipment for  P800,000. The equipment has an estimated salvage value of…

A: Solution Depreciation is the reduction of the recorded cost of a fixed asset in a systematic manner…

Q: On July 1, Harding Construction purchases a bulldozer for $228,000. The equipment has an 8-year life…

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

Q: An engineer bought an equipment for P 548,440. Other expenses including installations amounted to P…

A: Total cost of equipment = Purchase price  + other expenses including installations = P548,440 +…

Q: A construction company purchases $50,000 worth of equipment on July 1, 2014. The company estimates…

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

Q: A firm bought a machine for P56, 000. Other expenses including installation amounted to P4, 000. The…

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: A construction company purchases $50,000 worth of equipment on July 1, 2014. The company estimates…

A: Depreciation = (Purchase price - Salvage value)/useful life However, the purchase was made on July…

Q: Roxanne Co. purchased equipment for P500,000. The equipment had an estimated 10-year service life.…

A: Depreciation rate = Straight line depreciation rate x 150% = (100/10 years) x 150% = 15%

Q: Ze corporation purchased a machine for P1 million. Freight and installation charges amounted to 3%…

A: Depreciation - It refers to the fall in the value of fixed assets due to wear and tear. It's a…

Q: At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $225,000. It is…

A: Answer (a)  Calculation of depreciation (1) using SLM Formula -  (Cost - salvage value) ÷ useful…

Q: On the first day of its current fiscal year, Lupao Corporation purchased equipment costing P400,000…

A: Under double depreciation expense, the depreciation is calculated at double rate of straight line…

Q: An equipment was purchased for $30,000. It has a useful life of 5 years, and a residual value of…

A: Depreciation refers to the noncash expense which is levied on fixed assets due to wear and tear…

Q: A company imported a new manufacturing machine for their plant, paying P 850,000 to the…

A:

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: A company bought an equipment fee for P56,000. Other expenses including installation amounted to…

A: Depreciation: Due to usage, passes of time, obsolete and accident reduction in the value of fixed…

Q: An engineer bought equipment for P500,000. Other expenses including installation amounted to…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: A computer, printer, and copier were purchased for a total price of Php 250,000 on August 1, 2013.…

A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…

Q: A telephone company purchased microwave radio equipment for P6,000,000. Freight and installation…

A: Depreciation is a charge for using the asset over its life. The depreciation is recorded as a charge…

Q: On April 1, Cyclone's Co. purchases a trencher for $310,000. The machine is expected to last five…

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

Q: Blue Company purchases equipment on January 1, Year 1, at a cost of $600,000. The asset is expected…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/12 years) x 2 =…

Q: A telephone company purchased a microwave radio equipment for P6M. Freight and installment charges…

A: Purchase price = P6,000,000 Freight and installment charges=P6,000,000 × 3.00%=P180,000 Total price…

Q: An company bought a telecommunication equipment for P160,000. Other expenses including installation…

A: Given the following information: Equipment purchase price: $160,000 Other expenses including…

Q: Jaen Advertising Inc. reported the following on its December 31, 2020, balance sheet: Equipment,…

A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…

Q: A broadcasting corporation purchased an equipment for BD5,300 and paid BD150 for freight and…

A: Solution Note Dear student as per the Q&A guideline we are required to answer the first question…

Q: The following information pertains to Nour Company: 1- Equipment was purchased on September 1, 2014…

A: 1. Prepare the necessary adjusting entries at December 31, 2019: S. No. Account Title Debit…

Q: York Instruments completed the following transactions and events involving its machinery. Year 1…

A: Calculation of Depreciation year wise is as follows: Resultant table:

Q: Anne company bought a computer for RM4,500. The estimated useful life of the asset was four years.…

A: Depreciation is an accounting term used for the cost allocated of an asset during its useful life.…

Q: Determine the depreciation charge during the 13th year and the book value at the end of 13 years by…

A: Formula:

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: A broadcasting corporation purchased an equipment for BD5,300 and paid BD150 for freight and…

A: Depreciation is the gradual conversion of the cost of a  fixed asset into expense. It does not mean…

Q: at the beginning of year 1, copeland drugstore purchased a new computer system for $250,000.  It is…

A: a.Calculate the depreciation for each of the five years, assuming that the company using straight…

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: Blue Company purchases equipment on January 1, Year 1, at a cost of $600,000. The asset is expected…

A: Sum-of-the-years'-digits = 1+2+3+4+5+6+7+8+9+10+11+12 = 78

Q: On January 1, Year 1, Melon Moving Company paid $60,000 to purchase a truck. The truck was expected…

A: Under the straight line depreciation method, annual depreciation expense is consistent over the…

Q: Ironworks Industries purchased a piece of equipment for $80,000 with an estimated salvage value of…

A: Equipment Cost            = $ 80000 Less: Salvage Value     =($ 15000)…

Q: An industrial plant bought a generator set for P120, 000. Other expenses including installation…

A: Here the amount to be depreciated will include the installation cost. This is because without the…

Q: The accountant of Beta Company has ascertained the following information at 1 October 20X6: (1) The…

A: Impairment of assets means reducing the book value  of assets when carrying amount is more than…

Q: A machine costs P 8,000 which last for 7 years with a salvage value at the end of its life of P 355.…

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

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

A: Value       5,00,000 Years 5 Salvage value       1,00,000 Depreciation Double declining method…

Q: A new vehicle was purchased on January 1 for $42,000. It has a salvage value of $9,000 and a useful…

A: Under the straight-line method: Annual depreciation = (Original cost - Salvage value) / Useful life

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…

Q: On April 1, Cyclone's Co. purchases a trencher for $302,000. The machine is expected to last five…

A: Solution: fraction for first year = Months from 1 April to 31 December = 9 months

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.