Problem 4: A piece of equipment used in a business has a first cost of P 50,000 and is expected to have a salvage value of P 10,000 when replaced after 30,000 hours of use. Compute: 1. the depreciation per hour use 2. the book value after 12,000 hours of operation

Problem 4: A piece of equipment used in a business has a first cost of P 50,000 and is expected to have a salvage value of P 10,000 when replaced after 30,000 hours of use. Compute: 1. the depreciation per hour use 2. the book value after 12,000 hours of operation

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 4RE: Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000...

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Question

Please answer what is asked in Problem 4 and show complete solution. Thank you.

Compute the book value of the machine at the end of the third year.
Problem 4: A piece of equipment used in a business has a first cost of P 50,000 and is
expected to have a salvage value of P 10,000 when replaced after 30,000 hours of use.
Compute:
1. the depreciation per hour use
2. the book value after 12,000 hours of operation
Dreblem
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