Sun light company produced 40000 bulbs by using the bulbs manufacturing machine during its life. The cost of the machine was OMR 20000 and expected residual value of the machine is OMR2000. If the machine has produced 10000 units , 10500 units, 9500units, 9000 units 1000 units in years 1,2 3,4 and 5 respectively, find out the amount of depreciation to be charged on machine in year 4 by following units of production method. a. OMR 4950 b. OMR 2700 c. OMR 4050 d. OMR 5400

Q: AG&M Cutting Tools Company purchased a new abrasive jet-cutting machine in 2012 at a cost of…

A: a.   Compute the value of cost basis of the machine:   Hence, the value of cost basis of the…

Q: A machine was purchased at an original cost of P3,250,114 with a salvage value of P386,985. The…

A: Loss in value for every unit produced=Original cost-Salvage valueExpected total…

Q: Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $39,000.…

A: The Depreciation under SLM basis has been computed as under:Cost of Machine 39000   Less: Salvage…

Q: Your company purchased an asset with a total cost of $600,000.  The asset creates small items used…

A: First step is to calculate the rate per unit. Rate per unit = Cost - salvage value / Estimated units…

Q: Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $39,000.…

A: The higher income means the lower depreciation expense which does not mean the asset is efficiently…

Q: A corlcrete and rock crusher for demolition work has been purchased for $60,000, and it has an…

A: Depreciation is the allocation of cost of asset over the useful life of asset. There are many…

Q: athe machine has an estimated salvage value of P10,000 at the end of its useful life of 8 yrs.…

A: Double declining balance method is which there is double the depreciation of straight line method of…

Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…

A: Lets understand the basics. Depreciation is a reduction in value of asset due to wear and tear,…

Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…

A: Deprecioation expense per unit = (Cost - Salvage value)/Total units of production

Q: At the beginning of 2012, Logan Services purchased a Xerox copy machine for $40,400. Logan Services…

A: SOLUTION- FORMULAS- 1- STRAIGHT LINE METHOD - DEPRECIATION EXPENSE= (COST - RESIDUAL VALUE )/ USEFUL…

Q: A machine with a cost of $60,631.00 has an estimated residual value of $4,924.00 and an estimated…

A: Please Note: Since you have asked multiple questions, we will solve the first question for you. If…

Q: Three years ago, you purchased woodworking equipment for your hobby activities and side-line…

A: Depreciation under unit of production can be calculated by dividing cost of assts by number of hours…

Q: ABC Company has an equipment costing P 700,000 with an estimated residual value of P 70,000 and an…

A: Depreciation The purpose of calculating the depreciation cost of the assets to determine the actual…

Q: A machine costs RO 40,000 with a salvage value of RO 20,000. The expected life of the machine is…

A: Depreciation is the decrease in the value of asset. Salvage Value is the estimated value of property…

Q: A certain machine costs P40,000 and has a life of 4 years and a salvage value of P5,000. The…

A: Total units produced in 4 years = 1800 units + 2200 units + 3000 units + 4000 units  = 11000 units

Q: A milling machine costing P500,000 has an estimated useful life of 5 years with a scarp value of…

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

Q: Mkara bakers bought a machinery of Sh. 1,500,000. The Machinery is expected to produce 3 million…

A: (i) Depreciation charge per pencil = Sh.1,500,000-Sh.150,0003,000,000=Sh.1,350,0003,000,000=Sh. 0.45

Q: MTE mechanical engineering Company has a machine purchased 5 years ago at a cost of BDT 100000.00.…

A: Data given: Old Machine: Cost price = BDT 100000 Life of machine =10 years Annual depreciation = BDT…

Q: ool Company owns an equipment costing P5,200,000 with original residual value of P400,000. The life…

A: solution given Cost 5200000 Original residual value 400000 Useful life 10 years…

Q: A machine with a cost of $560,000 has an estimated salvage value of $8)0,000 and an estimated useful…

A: Given data, Asset cost =$560,000 Salvage value =$80,000 Useful life =40,000 hours The machine was…

Q: Concord Corporation constructed a building at a cost of $13650000. Weighted-average accumulated…

A: Assets: Assets are the resources of an organization used for the purpose of business operations.…

Q: A machine with a cost of $100 000 has an estimated residual value of $10 000 and an estimated life…

A: Solution..     Cost = $100,000  Salvage value = $10,000  Life = 45,000 hours over the estimated life…

Q: Kim Kwon Digital Components Company assembles circuit boards by using a manually operated machine to…

A:

Q: Copy equipment was acquired at the beginning of the year at a cost of $60,040 that has an estimated…

A: A) Depreciable cost = Cost of Equipment - Residual value =$60040 - $5500 =$54540   Depreciable cost…

Q: A machine with a cost of $77,082.00 has an estimated residual value of $5,948.00 and an estimated…

A: Depreciation expense = [(Cost of machine - Residual Value) / Total Hours ] *  Machine Hours used

Q: An equipment costs P480,000 and has a salvage value of 10% of its cost at the end of its economic…

A: The straight-line method charges depreciation by an equal amount and if the useful life of an asset…

Q: Zed Inc constructed a building at a cost of $13650000. Weighted-average accumulated expenditures…

A: Depreciation is an accounting method where the assets are gone through wear and tear over the period…

Q: A machine costs RO 40,000 with a salvage value of RO 20,000. The expected life of the machine is…

A: Given: Cost Value = RO 40,000 Salvage value = RO 20,000 So,  Depreciation per hour = Cost value -…

Q: 10 Sun light company produced 40000 bulbs by using the bulbs manufacturing machine during its life.…

A: Depreciation is the reduction in value of asset over the life of the asset. It is charged in the…

Q: Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $39,000.…

A: Cost of Machine 39000 less: Salvage value 4000 Depreciable  cost 35000 Divide: life 20000…

Q: Copy equipment was acquired at the beginning of the year at a cost of $51,850 that has an estimated…

A: Formulas: Depreciable cost = Cost - estimated residual value Depreciation rate = Depreciable cost /…

Q: Copy equipment was acquired at the beginning of the year at a cost of $38,600 that has an estimated…

A: Given, Purchase price = $ 38,600 Salvage value = $ 3500 Useful life = 5 years Total machine output…

Q: A machine with a cost of $135,000 has an estimated residual value of $15,000 and an estimated life…

A: Machine Hour Method:  Under this method, depreciation is calculated on the basis of hours that the…

Q: A machine with a cost of 120,000 has an estimated residual value of 15,000 and an estimated life of…

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

Q: . The Alpha Drug Company has just purchased a capsulating machine for ₱ 2,000,000. The plant…

A: Hai there! Thank you for the question. Question has multiple sub parts. As per company guidelines…

Q: a.  Prepare a differential analysis dated May 4 to determine whether to Continue with Old Machine…

A: Differential analysis (also called incremental analysis) is a management accounting technique in…

Q: Xanadu Company purchased a new machine on October 1, 2014, at a cost of Tk.96,000. The company…

A: Given the following information: Xanadu Company purchased a new machine on October 1, 2014, at a…

Q: On 1 January 2010. A company purchased equipment for BD 230,000. The new machines have a useful life…

A: These 2 are the most common methods of depreciation:   Straight line depreciation (SLD). This method…

Q: NUBD Co. had a machine with an original cost of P95,000 and an estimated salvage value of 5,000. It…

A: Sunk cost refers to expenses which have already been incurred and cannot be recovered at any cost…

Q: Power to a remote transmitting station is provided by a Diesel-electriegenerator unit. The original…

A: Original cost of unit =P65000Additional cost=P3000Shipment cost=P2000Expected life=10 yearsSalvage…

Q: On the first day of the fiscal year, Alpha Corporation purchased a machine with a cost of $65,000.…

A: Depreciation is the amount of reduction in the value of an asset due to normal wear & tear,…

Q: Prepare a depreciation schedule for the tax purposes (Annual depreciation and Book value) by…

A: Depreciation is charged on the assets indicating the decrease in the value of the asset.…

Q: What is the total depreciation for 2003 using Working Hours and Service Output Method?

A: Calculations of depreciation for 2003 using working hour method : Cost of machinery: 1,00,000 Scrap…

Q: A machine was purchased at an original cost of P3,250,114 with a salvage value of P386,985. The…

A: Depreciation: Depreciation refers to the process of decrease in the value of assets due to…

Q: A machine with a cost of $120,000 has an estimated residual value of $15,000 and an estimated life…

A: Hey, since there are multiple requirements posted, we will answer the first three requirements. If…

Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…

A: Because an asset is bound to experience wear and tear over time, depreciation must be provided. This…

Q: ABC Company has an equipment costing P 700,000 with an estimated residual value of P 70,000 and an…

A: If the upgrading costs improved the current condition of asset and provide extra benefit in future…

Q: Copy equipment was acquired at the beginning of the year at a cost of $52,140 that has an estimated…

A: a. Depreciable cost = Cost - residual value = $52,140 - $4700 = $47,440

Q: Jay Corp. bought a machine for $15,000. The machine is expected to produce 10,000 units. The machine…

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

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.