The asset - vehicle worth £21,200 will be depreciated by 10% at the end of the year. Which nominal accounts should be debited and credited, respectively? a) Debit Depreciation A/c & Credit Non-Current Asset A/c b) Debit Inventory A/c & Credit Depreciation A/c c) Debit Balance Sheet A/c & Credit Profit or Loss A/c

The asset - vehicle worth £21,200 will be depreciated by 10% at the end of the year. Which nominal accounts should be debited and credited, respectively? a) Debit Depreciation A/c & Credit Non-Current Asset A/c b) Debit Inventory A/c & Credit Depreciation A/c c) Debit Balance Sheet A/c & Credit Profit or Loss A/c

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
An asset is purchased for $50,000. The rate of depreciation is 15% p.a. Calculate the annual depreciation for the first two years under diminishing balance method.
An economic analysis is being performed in real (not actual) dollars. The company’s combined MARR is 10%, and the inflation rate is 4%. The asset has a first cost of $10,000. It will be depreciated as MACRS 3-year property using rates of 33.33%, 44.45%, 14.81%, and 7.41%. What depreciation amount will be shown in year 3 of the analysis?
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What will be the Book value of asset on 1stt July 2021 if its original cost is Rs. 500,000 and its accumulated depreciation to date was 320,000 and depreciation expense for the present accounting period ended 31st May 2021 50,000?
asset costing P50,000 has a life expectancy of 6 years and an estimated salvage value of P8000. Calculate the depreciation charge at the of the fourth year period using Declining Balance Method.
The carrying value of equipment was R400 000 on 01 March 2019, the start of the financial year, and R500 000 on 29 February 2020. Depreciation for the year ended on 29 February 2020 amounted to R40 000. Which one of the following represents the cost of the equipment that was purchased during the financial year? A) R100 000 B) R60 000 C) R360 000 D) R140 000
An asset costing Tk.38000 is estimated to have an economic life of 12 years with a net salvage value of Tk.3000. Find the depreciation charge for the seventh year and the book value at the end of the seventh year by the (i) Sum-of-year-digits method and (ii) Decline balance method
1.How much should be CREDITED (Debited) Retained Earnings as realization of Revaluation Surplus (Revaluation Loss) NEXT YEAR? 2. How much gain(loss) on sale to recognized if the equipment is sold for P8,000,000 ONE YEAR AFTER REVALUATION?
An income producing asset costs $6,630 and will be depreciated using 150% Declining Balance with a $896 salvage value over 13 years. What is the Book Value at the end of year 1?
The following balances were extracted from the trial balance of XY Co Ltd as at 31st December 2010. • Buildings (at cost) 22,500 • Accumulated depreciation buildings 6,250 • Fixture and fittings (at cost) 6,000 • Accumulated depreciation fixture and fittings 1,400 The depreciation is charged annually on the cost of fixed assets held at the end of the financial year at the following rates: • Buildings 4% per annum • Fixtures and fittings 10% per annum The totalnet book value is?