Consider the case of apiece of equipment costing $ 20000 and the scrap value $2000. the service life is estimated to be 5 years. Determine the asset value at the end of the first years, and the second years ? H. W at the end of 3d, 4th, 5th years. determine the depreciation cost
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Consider the case of apiece of equipment costing $ 20000 and the scrap value $2000. the service life is estimated to be 5 years. Determine the asset value at the end of the first years, and the second years ? H. W at the end of 3d, 4th, 5th years. determine the
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- Your business buys a delivery van for $28,000. You figure the van will be useful for 5 years and have a value of $5,000 at the end of the 5-year period. What is the (a) basis, (b) useful life, (c) salvage value, (d) depreciable basis, (e) accumulated depreciation at the end of year 2 if you take $4,600 depreciation each year, and (f) the book value at the end of year 2?A miniature building company named Tiny Touches purchased a 3D printer which costs $250,000. It is expected to last for 15 years and at the end of its useful life, it will cost $25,005 Find the annual depreciation if it’s depreciation using sinking fund method at 7%Using a spreadsheet, compute the book values of $12,000 asset over a seven year life, with declining balanece depreciation (d=0.25). Also, compute the book values of the $12,000 asset using straight line depreciation, with a scrap value of $2,000 after seven years. Determine the book values.
- An specialized machine has an initial cost of P50,000 and a salvage value of P10,000 after 10 years. What is the book value after five years using straight line depreciation? A. P35,000 B. P30,000 C. P25,000 D. P15,500Show manual solutions and depreciation schedule/table. An equipment costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the end of the period. Compute the depreciation charge and its book value after 10 years using declining balance method.Ans. BV = P60,832.80 d = P9,234.93An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $60,000, and it has an estimated MV of $12,000 at the end of an estimated useful life of 14 years. Double declining balance method is used to calculate the depreciation cost. a. What is the book value of the asset at the end of 5 years? b. What is the depreciation amount in the third year?
- Determine the rate of depreciation, the total depreciation, the total depreciation up to the end of the 8th year and the book value at the end of 8 years for an asset that costs P 15,000 new and has an estimated scrap value of P 2,000 at the end of 10 years by (a) Declining balance method (b) Double Declining balance methodA manufacturing company purchased an equipment for methods improvement for P 53,000. Paid P 1,500 for freight and delivery charges to the job site. What is the yearly depreciation cost using the sinking fund method at 6% interest. The machine has P 5,000 trade in cost and 10 yrs life.A machine has a 1st cost of P 140,000 and a life of 8 years with a salvage value of P10,000 at the end of its useful life. Using double declining balance method a. What is the Book Value on the 3rd year? b. What is the depreciation charge in the 4th year?
- A set of Wire Bond machine costs $500,000. This amount includes freight and installation charges estimated at 10% of the original price. If the machine shall be depreciated over a period of 10 years with a salvage value of $5,000, what is the annual depreciation charge and the book value at the end of 7 years?A factory has decided to purchase some new equipment for P600, 000. The equipment will be kept for 10 years before being sold. The estimated salvage value for depreciation purposes is to be P45,000. Using straight line method, what is the annual depreciation on the equipment? a. P55, 500 b. P50,000 c. P51,500 d. P52, 500Solve correctly in excel Six years ago, a company purchased $30,000 of equipment. The equipment has just been sold for $5000. The equipment was depreciated using 50% bonus depreciation / 50% MACRS (using a 5-year recovery period). The actual savings due to the purchase of the equipment is shown below. The firm's MARR is 12% and it's tax rate is 25%. What is the after-tax present worth of the investment? Year 1 2 3 4 5 6 Savings 5000 6000 7000 7000 4000 3000