Equipment costing $70,000 with a salvage value of $14,000 and an estimated life of eight years has been depreciated using the straight-line method for two years. Assuming a revised estimated total life of five years and no change in the salvage value, the depreciation expense for year three would be O $14,000. $11,200. O $8,400. O $18,667.

Q: A depreciable property costing P2,600,000 with original scrap value of P200,000 after 15 years, ha…

A: DEPRECIATION: It is the reduction in the value of fixed assets due to its continuous use. It is…

Q: Equipment with a cost of $304,000 has an estimated residual value of $41,600, has an estimated…

A: Depreciationn is considered a reduction in the value of asset give two uses of that asset. We can…

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: A light truck is purchased on January 1 at a cost of $25,000. It is expected to serve for eight…

A: Formula: Units of Production Depreciation= Cost- Salvage ValueTotal Units Produced in Life×Actual…

Q: Equipment was purchased for $75,000. Freight charges amounted to $3,500 and there was a cost of…

A: Initially Property Plant & Equipment are recorded at cost , which includes the purchase price of…

Q: A motorized cultivator with a first cost of $28,000 and salvage value of 25% of the first cost is…

A: Cost=$28000Salvage value=25%Number of years=5yearsOperating cost=$43000

Q: A secondhand bulldozer acquired at the beginning of the fiscal year at a cost of $56,000 has…

A:

Q: Equipment with a cost of $148,651 has an estimated residual value of $8,247 and an estimated life of…

A: Depreciation: Reduction in value of asset over a period of time due to obsolescence, wear and tear…

Q: Equipment with a cost of $95,550, an estimated residual value of $4,550, and an estimated life of 13…

A: Depreciation as per straight line method is given as under: = (Original cost - Salvage value) ÷…

Q: When originally purchased, a vehicle costing $25,380 had an estimated useful life of 8 years and an…

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

Q: When originally purchased, a vehicle costing $23,000 had an estimated useful life of 8 years and an…

A: The computation is as follows: Hence, option A) $5,000 is the correct answer.

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: Equipment acquired at the beginning of the year at a cost of $470,000 has an estimated residual…

A: Depreciable cost = cost of asset - residual value

Q: A machine was installed at a cost of RM3,600. Its useful life was estimated to be five years or…

A: Depreciation (Straight line method) = (Cost of the assets - Salvage value) / Life of the assets =…

Q: Equipment with a cost of $149,390.00 has an estimated residual value of $8,651.00 and an estimated…

A: Given: It is to be depreciated by the straight-line method.   Straight-line Depreciation = (Original…

Q: A machine that cost $ 20,000 has been depreciated on a straight line basis assuming a service life…

A: Annual Depreciation = (Cost of the assets - Salvage value) / life of the assets = ($20,000 - 0) / 10…

Q: Equipment with a cost of $65,520, an estimated residual value of $3,120, and an estimated life of 13…

A: Depreciation as per straight line method is calculated by taking cost reduced by salvage value and…

Q: Equipment with a cost of $477400 has an estimated salvage value of $55000 and an estimated life of 4…

A: Depreciation is the way of allocating the cost of the assets over the life of the asset, it can be…

Q: Machinery was purchased on January 1 for $53,900.00. The machinery has an estimated life of seven…

A: Answer: Double declining balance depreciation is a method of depreciation similar to declining…

Q: Equipment with a cost of $950000 has an estimated salvage value of $30000 and an estimated life of 4…

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

Q: Equipment with a cost of $73,163.00, an estimated residual value of $5,819.00, and an estimated life…

A: Annual depreciation = (cost of the assets - residual value)/ Life of the assets = ($73,163-$5,819) /…

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: A plant asset cost $288,000 and is estimated to have a $36,000 salvage value at the end of its year…

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

Q: A plant asset cost P96,000 and is estimated to have a P12,000 salvage value at the end of its 8-year…

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

Q: Equipment with a cost of $148,767.00 has an estimated residual value of $8,167.00 and an estimated…

A: There are different types of depreciation methods In this question, it has to be depreciation using…

Q: Equipment with a cost of $155,546 has an estimated residual value of $7,131 and an estimated life of…

A: Workings: Depreciation = (original cost - residual value) / useful life years.

Q: When originally purchased, a vehicle costing $24,120 had an estimated useful life of 8 years and an…

A: IAS(International Accounting Standard)-16 Property, Plant, and Equipment provide that whenever there…

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: A company acquired equipment that cost $12,000 by paying $1,000 cash and obtaining a loan of…

A: Annual Depreciation = Total Cost of Asset - Salvage ValueUseful life

Q: An item of equipment acquired on January 1, at a cost of RM100,000, has an estimated use of 50,000…

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

Q: Equipment with a cost of $662000 has an estimated salvage value of $50000 and an estimated life of 4…

A: Depreciation is the method of allocating the cost of a asset over its useful life. Depreciation…

Q: The first cost of a machine is Php 1,800,000 with a salvage value of Php 300,000 at the end of its…

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

Q: The cost basis is $81,000. The useful life is five years with no salvage value. Please provide a…

A: Straight-Line Depreciation Expense=Cost of Asset-Salvage ValueUseful Life Double-Declining…

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 machine with a cost of $480,000 has an estimated salvage value of $30,000 and an estimated useful…

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

Q: Equipment with a cost of 220,000 and has an estimated residual value of 30,000 and an estimated life…

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

Q: An assembly line conveyor system with a 5-year life is to be depreciated by the DDB method. The…

A: Double Declining Balance (DDB) method is a depreciation method under which the depreciation rate is…

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

A: Solution - Depreciation= (value of assets - residual value)/No. Of years of useful life (As per…

Q: Equipment with a cost of $88,200, an estimated residual value of $4,200, and an estimated life of 14…

A: The value of an asset decreases as time passes due to wear and tear or obsolescence, this decrease…

Q: Rex company constructed a building at a cost of 13,650,000. Weighted-average accumulated…

A: Depreciation is an method to account assets which have undergone through wear and tear over the…

Q: Equipment costing $34000 with a salvage value of $ 18000 and an estimated life of 8 years has been…

A: Accumulated depreciation for 2 years = (Cost - salvage) * 2/ 8 = (34000 - 18000) * 2/ 8 = $4000 Book…

Q: The cost of a machine is RO 18000 with a salvage value of RO 3000 at the end of its six years of…

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

Q: salvage value of $30,000 and an estimated life of 4 years or 10,000 hours. It is to be depreciated…

A: Cost of equipment = $450,000 Salvage value = $30,000 Estimated useful life = 10,000 hours…

Q: Equipment with a cost of $450,000 has an estimated salvage value of $30,000 and an estimated life of…

A: The depreciation is a decline in the value of tangible assets over their useful life. it is a…

Q: Depreciable mining equipment costing $100,000 is expected to have a useful life of 120,000 units of…

A: Units of Production method Depreciation  =  Cost Of Asst - Salvage valueEstimated total 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: Equipment with a cost of $82,805, an estimated residual value of $4,980, and an estimated life of 15…

A: Depreciation expense=Cost-Residual valueEstimated life=$82,805-$4,98015=$5,188   Compute the…

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.