Assume that a drill press is rebuilt during its sixth year of use so that its useful life is extended 5 years beyond the original estimate of 10 years. If the asset recognition criteria are met, the cost of rebuilding the drill press should be charged to the appropriate: expense account                                     asset account accumulated depreciation account             liability account

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: ZYK company makes its policy that for every new equipment purchased, the annual depreciation should…

A: SYD Stands for Sum-of-Years Digits. The sum-of-the-years' digits (SYD) method is a faster way to…

Q: The Flint Clinic purchased a new surgical laser for $81,000. The estimated salvage value is $5,100.…

A: Depreciation per hour (units of activity method) = (Cost of the assets - Residual value) / Expected…

Q: A plant asset was purchased on January 1 for $20,000 with an estimated salvage value of $4000 at the…

A: DEPRECIATION UNDER STRAIGHT LINE METHOD = (COST OF ASSET - SALVAGE VALUE) / USEFUL LIFE OF ASSET…

Q: A piece of equipment is purchased for $40,000 and has an estimated salvage value of $1,000 at the…

A: Purchase cost=40,000 Salvage value=1,000 Useful life=5 years Straight line method: Depreciation…

Q: A piece of equipment bought for $104,000 is  expected to have a $2,000 salvage value at the end of…

A:

Q: A brand new car was bought for P750, 000 with an estimated useful life of 6 years with a salvage…

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Q: A chemical plant purchased a $ 167,147 machine that has a useful life of 7 years. If the machine has…

A: Depreciation is the deduction for the wear and tear of an asset. In the case of straight-line…

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

A: Requirement A:Determine the depreciable cost of the building.

Q: A building with a cost of $112,500 has an estimated residual value of $22,500, has an estimated…

A: Under straight line method of depreciation, depreciation remains same every year. Straight line…

Q: A building acquired at the beginning of the year at a cost of $3,585,000 has an estimated residual…

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

Q: A company that manufactures pulse Doppler insertion flow meters uses the straight line method for…

A: Depreciation: It refers to a gradual decrease in the fixed asset’s value because of obsolescence,…

Q: A manufacturing system for fabricated metal products is purchased in the middle of the fiscal year…

A: Manufacturing business entity can be defined as the business were the raw materials are processed…

Q: An asset was purchased and installed for $277,685. The asset is classified as MACRS 7-year property.…

A: Depreciation: Generally speaking, the word "depreciation" refers to an accounting process that is…

Q: machine has been purchased at 3,00,000 with estimated salvage value of 30,000 at the end of its…

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Q: A gas-powered electric generator is purchased by a public utility as part of an expansion program.…

A: MACRS-GDS is the abbreviation used for the Modified Accelerated Cost Recovery System-General…

Q: An intangible asset with an estimated useful life of 30 years was acquired on January 1, 2010, for…

A: Amortization: Amortization is a process in which the cost of intangible assets is spread equally…

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: A building acquired at the beginning of the year at a cost of $1,630,000 has an estimated residual…

A: Under the Straight line method, the Value of the Fixed Asset is allocated equally over its useful…

Q: An owner may calculate depreciation using the 'units of production' methods of depreciation.…

A: Depreciation per unit = (Cost of the asset - Salvage value) / Estimated production during the life =…

Q: Keyser Company purchased a machine that has a manufacturer's suggested useful life of 20 years. The…

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

Q: A building acquired at the beginning of the year at a cost of $1,630,000 has an estimated residual…

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Q: If an asset is book depreciated by the DDB (Double Declining Balance) method over a 5-year period,…

A: Depreciation is a method to represent the reduction in value of the asset. This is a way that is…

Q: An asset with unknown first cost value is depreciated by the straight-line method over its five year…

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

Q: Given an asset which has an initial cost of $100,000, Useful life of 4 years and a salvage value of…

A: Straight line depreciation rate=100%Useful lifeDouble declining depreciation rate=Straight line…

Q: A building that was purchased on December 31, 2006, for $2,500,000 was originally estimated to have…

A: Annual depreciation prior to 2020:   Annual Depreciation = Cost / Estimated Life…

Q: Assume that the equipment consists of an input device with a cost of $60,000, residual value of…

A: GIVEN DATA   Assume that the equipment consists of an input device with a cost of $60,000, residual…

Q: Suds-n-Dogs just purchased new automated bun-handling equipment for $12,000. The salvage value of…

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: If an asset book-depreciates by the DDB method over a 10-year period, how long will it take to reach…

A: The DDB depreciation technique is a way of assigning bigger amounts of expenditures to an asset in…

Q: To receive economic benefit from an intangible asset, a) The asset must be used more than two years…

A: Assets are the items which are expected to provide the benefits to the owners in the future. The…

Q: Equipment with a cost of $200,000 has an estimated residual value of $10,000, has an estimated…

A:

Q: If an asset is book-depreciated by the DDB method over a 5-year period, how long will it take to…

A: Salvage value is 25 percent to the first cost (FC). Time period (n) is 5.

Q: A construction company is considering changing its depreciation from the MACRS method to the…

A: Depreciation refers to an accounting method or system of allocating the cost of a tangible or…

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…

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

Q: Find the yearly depreciation of a $100,000 five-year classconcrete mixer, first assuming that it is…

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Q: Consider a five-year MACRS asset that was purchased for $76,000. Computethe gain or loss amounts if…

A: Computation:

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

Q: A company purchased an equipment costing $60,000. The equipment has guaranteed useful life of 16…

A: The formula for Depreciation as per the sinking fund method: Dt = ( A-S ) ( 1 + j )( t - 1 ) / Sn|j…

Q: Prepare a depreciation schedule for the tax purposes (Annual depreciation and Book value) by…

A: Depreciation is charged on the assets indicating the decrease in the value of the asset.…

Q: Please assist in solving the problem below. Thanks Bramble Corp. purchased a depreciable asset for…

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Q: Computer equipment was acquired at the beginning of the year at a cost of $59,800 that has an…

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Q: [The following information applies to the questions displayed below.] NewTech purchases computer…

A: Straight line method of depreciation (Cost of asset - salvage value) / useful life   Depreciation…

Q: The Hartley Clinic purchased a new surgical laser for $90,000. The estimated salvage value is…

A:

Q: A building acquired at the beginning of the year at a cost of $1,630,000 has an estimated residual…

A: Since you have asked multiple questions, we will solve the first three questions for you. If you…

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…

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.