Lloyd Company purchased a depreciable asset for P1,360,000. The estimated salvage value is P360,000, and the estimated useful life is 8 years. The double-declining balance method will be used for depreciation. What is the depreciation expense for the second year on this asset? *   Choices: 125000 170000 187000 255000

Q: Solid Builders Corporation purchased a transport mixer for P984 000.00. This equipment is to be…

A: The Matheson formula assumes that depreciation is a fixed charge of annual cost. Annual rate of…

Q: Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,000. The same had an…

A: Depreciation as per straight line method =  (Cost - salvage value) /useful life

Q: On July 1, 2022, Proton, Inc. sells equipment for P44,000. The equipment originally cost P120,000,…

A: Given: - Cost= 120,000 Accumulated Depreciation=70,000 Salvage value=20,000 Useful life= 5 years

Q: Mandu Corp. acquired a machine at a total cost of P5,200,000. The estimated life of the machine is 8…

A: Depreciation per hour = (Cost of the assets - Salvage value) / Total estimated operating machine…

Q: A MACRS-depreciated asset has B = $100,000, S = $40,000, and a 10-year recovery period. (The dt…

A:

Q: Entity A acquired an asset that had a cost of P130,000. The asset is being depreciated over a 5-year…

A: Depreciation Expenses:- It is an expense incurred due to the continuous use of an asset. In this,…

Q: Assume that a company acquired a building on January 31, 20x1 at a cost of P1,000,000. The building…

A: Depreciation means fall in value of assets because of use of assets , passage of time or change in…

Q: Marlow Company purchased a point of sale system on January 1 for $6,900. This system has a useful…

A: Depreciation  rate under double declining method  = 2 / useful life  =2/10 =0.2 Or 20%

Q: Union Industries purchased equipment for $86,000 on January 1st, 2022. The useful life of the…

A: Depreciation is a reduction in value of asset due to wear and tear, technological advancement, other…

Q: Lacey Company purchased a depreciable asset for $440,000. The estimated salvage value is $20,000,…

A: Depreciation is the decrease in value of assets due to its obsolete condition ,wear and tear…

Q: 1. Which depreciation method is the company using in each example? 2. Compute the depreciation…

A: (1). N Company purchased as asset for $17,000 on January 2, 2021. The asset has an expected residual…

Q: Mandu Corp. acquired a machine at a total cost of P5,200,000. The estimated life of the machine is 8…

A: Depreciation rate per hour = (Cost-Salvage value)/Total working hours

Q: On January 1, Global, Inc. purchased a new machine for $80,000. Its estimated useful life is eight…

A: The reduction in the value of the assets over a period of time is referred to as depreciation. The…

Q: An asset was purchased for $124,000 on January 1, Year 1 and was originally estimated to have a…

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

Q: On July 1, 2004, Gonzalez Corporation purchased factory equipment for P450,000. Salvage value was…

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

Q: Beckman enterprises purchase a depreciable asset on Oct1, year1 at a cost of 132,000. the asset is…

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

Q: A building was purchased for $400,000 and depreciated for 10 years on a straight-line basis under…

A: Depreciation formula as per straight-line basis: Annual depreciation=Cost-Salvage valueUseful Life

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

A: Depreciation rate = P160,000 / P400,000 = 40%

Q: Marissa's company recently purchased a depreciable asset for $190,000. The estimated salvage value…

A: Depreciation is an outlay reported in the books of a business entity to report the regular usage of…

Q: On January 1, 20x1, ABC Company purchased a machine for P4,000,000. The machine has a useful life of…

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

Q: Company B purchased equipment for 110,000 on 1/1/2020. The equipment has a useful life of 5 years…

A: Depreciation expense is part of cost of the asset charged as expense in the income statement.…

Q: A depreciable asset currently has a $40,100 book value. The company owning the asset uses…

A: Formula: Straight line method = ( Cost of Asset - Salvage value ) / useful life

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: Falcon co purchased an asset for $100,000 ,which has a salvage value $6,000 after 10years. Based on…

A: That value at which an asset can be disposed of at the end of its life is known as salvage value or…

Q: An asset has a depreciable base of $80,000 and an estimated useful life of 4 years. In the first…

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

Q: On October 1, 2022, Sandhill Co. places a new asset into service. The cost of the asset is $103500…

A: Depreciation is the diminution in the worth of assets due to their erosion or normal wear and tear.…

Q: On April 1, 2022, Deland Manufacturing Company purchased a new equipment for P800,000. The equipment…

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

Q: Consider a 5-year MACRS asset, which was purchased at $140,000. The asset was disposed of at end of…

A: MACRS depreciation is the tax depreciation  framework utilized in the United States. MACRS is an…

Q: The price of a corporate railroad car purchased by Billings Corporation was $107.891. It cost $1,402…

A: Formulas used in the solution:-

Q: Bramble Corp. purchased a depreciable asset for $ 726000 on April 1, 2018. The estimated salvage…

A: Solution: Annual depreciation on asset = (Cost - Salvage value) / Useful life = ($726,000 - $72,000)…

Q: Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,000. The same had an…

A: As per straight line method of depreciation Depreciation per annum = (cost - Residual value) /useful…

Q: Pinewood Corporation purchased a piece of equipment for S70,000. It estimated an 8-year life and a…

A: Answer 1) Calculation of Depreciation expense as per Original Estimate Annual depreciation expense =…

Q: Consider a 5-year MACRS asset, which was purchased at $140,000. The asset was disposed of at end of…

A: The MACRS is the depreciation system that is specifically used in the U.S. As per this method,…

Q: An asset owned by PT X has the following information: initial cost = $10,000, depreciation life = 5…

A: Cash flow after tax is the amount hich measures the company's capability to generate cashflows…

Q: Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,00O. The same had an…

A: Depreciation as per straight line method = (cost - salvage value) /useful life =  P5000, 000/8 =…

Q: An asset was purchased for $103,000 on January 1, Year 1 and originally estimated to have a useful…

A: Depreciation is a non-cash expense which is recorded to report the regular wear and tear of an…

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: Company A bought a building for OMR 36,500, which has the expected useful life of four years and a…

A: Depreciation means the amount fixed assets written off due to normal wear and tear , normal usage ,…

Q: Noah Corp., a calendar year-end company, purchased equipment on 1/1/X1 with the following…

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

Q: Concord Corporation purchased a piece of equipment for $85,200. It estimated an 5-year life and…

A: Solution: Accumulated depreciation upto 3 years = (85200-2200)*3/5 = $49,800 Book value at the…

Q: Assume that a company acquired a building on January 31, 20x1 at a cost of P1,000,000. The building…

A: It is the amount that declines the value of an asset every year.

Q: Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,000. The same had an…

A: solution ‘ working note purchase date of machinery        =January 1 2022 annual depreciation…

Q: Beckman Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $164,0000. The…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/5 years) x 2 = 40%

Q: Oriole Company purchased a piece of equipment for $73,100. It estimated an 8-year life and a $2,700…

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

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: Swifty Corporation purchased a depreciable asset for $371000. The estimated salvage value is $26000,…

A: The different methods for computing depreciation are straight line method of depreciation, double…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.