Assume that you have purchased an asset for OMR 10000 and expecting the useful life of 10 years. If you have charged the total depreciation of OMR 8000 over its useful life, calculate the residual value of the asset. a.

Q: Consider an asset with a cost basis of $10,000 that has been depreciated using 100% bonus…

A: The bonus deduction allows deducting 100% of the cost in the first year instead of different years…

Q: Assume that you have purchased an asset for OMR 10000 and expecting the useful life of 10 years. If…

A: Depreciation is charged on as asset due to obsolescence or uses of an asset over a period of time.

Q: . An equipment depreciates from its purchase price of 7,200 to 400 at the end of 9 years. If money…

A: solution given Cost of asset 7200 Residual value 400 Depreciable book value 6800…

Q: An asset costing P50,000 has a life expectancy of 6 years and an estimated salvage value of P8000.…

A: Purchase Cost = P50,000 expected life span = 6 years Salvuge value = P8000

Q: 2. An electronic computer was purchased by a company for $90,000 and is assumed to have a salvage…

A: Electronic Computer = $90,000 SAlvage Value = $10,000 Years = 10 Depreciation each year = [Cost -…

Q: 3. An asset initially costs P55,000.00 and a salvage value P5,000.00 after 11 years. What is the…

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

Q: 50. Determine the depreciation charged during the 5th year using sum of the year digit method of a…

A: Under the SYD method, the depreciation rate percentage for each year is calculated as the number of…

Q: An electronics balance costs P84,000 and has an estimated salvage value of P6,000 at the end of its…

A: Sum of years digit = 14 + 13 + 12 + 11 + 10 + 9 + 8 + 7 + 6 + 5 + 4 + 3 + 2 + 1 = 105

Q: 13. An asset which cost $100,000 is being depreciated under MACRS using a 10-year normal recovery…

A: MACRS: MACRS stands for Modified accelerated cost recovery system. MACRS depreciation table:

Q: for this equipment. 6. Calculating Salvage Value Consider an asset that costs $635,000 and is…

A: Cost of assets = $635,000 Life = 8 Years Annual depreciation = 635000/8 = $79375 Life used = 5 Years…

Q: Your company purchased an asset with a total cost of $300,000. The asset has an expected useful life…

A: Straight line method , Depreciation expense = ( Cost - Salvage value ) / Useful life

Q: 10. Determine the rate of depreciation, the total depreciation up to the end of the 8th year and the…

A: Depreciation Expense - Depreciation Expense is the expense incurred because of usage, wear and tear,…

Q: Q1. A commercial company plans to buy the device for $ 20,000 and is expected to sell it for $ 8,000…

A:

Q: ot the mentioned. 7. An asset purchased for S50,000 is to be depreciated over 5 years using the…

A: Given Information :  Cost of asset = $50,000 Salvage Value = $10,000 Life of asset = 5

Q: What is the amount of depreciation to be allocated in the last year according to the prorated…

A: Introduction Prorated depreciation means if an entity wants to adjust their depreciation on pro-rata…

Q: If the interest rate is 8%, the net present worth of this equipment is:

A: Net Present Value: It is the net present worth of the annual cash flows and the initial cost of…

Q: Assume that on 31st December 2014 Ali and Sons Company purchased a machine for OMR 20000 and…

A: Depreciation under straight line method is computed as below : Depreciation = (Cost of asset -…

Q: Find the annual depreciation for an equipment whose purchase value is 6,250 and loses its value to…

A: Depreciation is amount of value equipment is losing each year.

Q: An asset was purchased 7 years ago for $10000. It was estimated to have a 10 year service life and a…

A: Depreciation rate under Declining Balance Method = 1/Useful life           = 1/10            = 10%

Q: Gato Company invested in a machine with a useful life of six years and no salvage value. The machine…

A: Time adjusted rate of return = IRR = 10% Annual cash inflow (A) = P 6000 Let the original investment…

Q: Part a) Use a 10% MARR to determine the economic service life (ESL) of a defender asset (and the…

A: Given, First cost = $70,000 annual operating cost (AOC) = $20,000 per year Maximum remaining useful…

Q: Muddy Fields Earthmoving can purchase a bull- dozer for $30,000. After 7 years of use, the bull-…

A: Depreciation is method which an entity recovers the cost of asset over the life of the asset.

Q: The first question: An investor saves annually an amount of money amounting to A with an annual…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: 12.1         Metal Stampings, Inc., can purchase a new forging machine for $400,000. After 20 years…

A: 12.1         Metal Stampings Inc.'s Purchase cost of new forging machine = $400000 Use = 20 years…

Q: 40. An asset that cost P15,000 new has an estimated scrap value of P2,000 at the end of 10 years…

A: Rate of depreciation = 1 - ( residual value / cost )^(1/n ) where , n = useful life Residual value =…

Q: Using the sum of the year’s digit method of depreciation, if the useful life of an asset is 10…

A: SOLUTION- SUM OF THE YEAR  DIGIT METHOD- IT IS AN ACCELERATED METHOD FOR DETERMINING AN ASSET'S…

Q: Oman Flour mills purchased an equipment and it will be depreciated in such a way that the value of…

A: a. Scrap value of the equipment = OMR 20,000*(0.9)^6…

Q: 13 the cost of a property is estimated to be 3500000 and the sales price quoted to be 4500000. An…

A: Installment method is a method of revenue recognition in which gross profit is deferred until cash…

Q: he effective age of our subject is 10 years with a depreciation of 9%. The comparable has an…

A: Age-adjusted rates mean the rates that should be there in case of the population under study is…

Q: A vehicle costs R15 000. It is expected to have a useful life of 6 years and a residual value of R3…

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

Q: A $100,000 asset has a $20,000 salvage value after its 10-year useful life. The depreciation…

A: Depreciation expense refers to the fall in the value of the asset due to passage of time, wear and…

Q: what will be the new net present value?

A: Net Present Value (NPV) is a discounting method used in capital budgeting process. It compares the…

Q: The amount of the average investment for a proposed investment of $172,000 in a fixed asset with a…

A: Average Investment = (Initial Investment + Scrap Value) / 2

Q: .Depreciate this asset using straight line depreciation  and declining balance depreciation.

A: 1. Straight-line method: Depreciation p.a. = (Cost - Salvage Value) / Useful life   2. Declining…

Q: A certain building has a salvage value of P 1 million after 50 years. Annual depreciation is Php 2…

A:

Q: A company is considering two alternatives for manufacturing a certain part. Method R will have a…

A:

Q: 0-The book value of the asset sold is calculated as a. Book Value = Cost – Accumulated Depreciation…

A: Book value is the real value of the asset on the date of the financial statement. It is considered…

Q: 59. What is the depreciation factor per year of a hand tractor that is bought at P150, 000.00, if it…

A: Depreciation factor per year = (Purchase cost - Salvage value) ÷ Useful years. The above calculation…

Q: The expected amount to replace or duplicate a property after 10 years after the effects of inflation…

A: Note: No intermediate rounding is done in the solution. Also, no approximation formula is used. For…

Q: 30. A car costs P800,000.00 and the salvage value is 10% of the original cost after 15 years. Find…

A: Lets understand the basics. In sum of years digit method, depreciation is calculated by the totaling…

Q: QUESTION 1 A S year old machine is assumed to have depreciated annually at a rate of 4.3% and its…

A: The value which shows the current valuation for the future amount is called the present value. The…

Q: 24. Norway Company owned two investment properties with the following details: Fair Value Dec.…

A: Initial costs are the costs which are recorded when the resources are purchased and fair value is…

Q: Use the depreciation table below to answer the questions that follow: Recovery Year 5 Years 7…

A: Calculation of net proceeds from sale of asset at the end of year 4:

Q: PQ16.09 An asset with a first cost of $100,000 is depreciated over 5-year period. It is expected to…

A: >Accounting principle states that the cost of the long term assets (like equipment) is to be…