The cost of a Helicopter is $150,000. The declining balance method is used for computing depreciation. If the depreciation rate is 19 percent, compute the book value and accumulated depreciation of the boat at the end of 7 years.
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Question 13
The cost of a Helicopter is $150,000. The declining balance method is used for computing
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- A delivery van was bought for 18,000. The estimated life of the van is four years. The trade-in value at the end of four years is estimated to be 2,000. Required Prepare a depreciation schedule for the four-year period using the straight-line method. Check Figure Year 1 depreciation, 4,000N1. Account A piece of equipment is purchased for $40,000 and has an estimated salvage value of $1,000 at the end of the recovery period. Prepare a depreciation schedule for the piece of equipment using the straight-line method, the sum-of-the-years method, and the 200% declining-balance method with a recovery period of five years. Compare these depreciation methods in a graph.T1. A machine has a cost of $17,100, an estimated residual value of $4,020, and an estimated service life of seven years. The machine is being depreciated on a straight-line basis. At the end of the second year, what amount will be reported for accumulated depreciation? (Do not round your intermediate calculations. Round annual depreciation amount to the nearest dollar amount.) Multiple Choice $1,869 $3,737 $13,363 $4,886
- 60. Equipment costing P588,000 has a useful life of five years with an P80,000 salvage value at the end of five years. How much is the depreciation expense for the year?A. P101,600B. P100,600C. P106,100D. P100,100 61. Equipment costing P588,000 has a useful life of five years with an P80,000 salvage value at the end of five years. What is the adjusting entry?A. Debit: Depreciation Expense and Credit: Accumulated Depreciation-EquipmentP101,600B. Debit: Depreciation Expense and Credit: Accumulated Depreciation-EquipmentP100,600C. Debit: Depreciation Expense and Credit: Accumulated Depreciation-EquipmentP106,100D. Debit: Depreciation Expense and Credit: Accumulated Depreciation-EquipmentP101,100 62. Received P18,000 cash advance for a contract to provide services in the future. The contract required a 1-year commitment, starting April 1 of the current year. How much is the balance of the unearned contract revenue ending December 31 of the current year?A. P4,500B. P13,500C. P18,000D.…question 4 ABC Company purchased equipment on May 1, 2021 costing $1,000,000. Its estimated salvage value is $80,000 and its expected life is eight years. Estimated total units of activity is 200,000 hours. Instructions: Calculate the depreciation expense (to the nearest dollar) by each of the following methods, SHOWING ALL CALCULATIONS. (a) Straight-line for 2021, 2022 (b) Double-declining balance for 2021, 2022 (c) Sum-of-the-years'-digits for 2021, 2022 (d) Units of activity method, assuming 15,000 hours in 2021 and 29,000 hours in 2022 (e) Record the entry for depreciation in 2021, assuming the double declining balance method is used (f) Calculate the book value of the asset at 12/31/22, assuming the straight line method is usedPROBLEM 3 Green Vegetable Mfg. Co. purchased equipment on January 1, 2019, at a cost of $800,000. The equipment is expected to have a service life of ten years, or 40,000 hours, and a residual value of $70,000. During 2019, the equipment was operated for 5,000 hours, and during 2020, it was operated for 7,000 hours. Required: Calculate depreciation expense (to the nearest whole dollar) for this machine in 2019 and 2020 under each of the following depreciation methods: *Straight-line method *Activity method (hours) *Double declining balance method Input only the answer on the Excel Template file. You may work calculations by hand on paper or in Excel. Your choice.
- A machine costs P 8,000 which last for 7 years with a salvage value at the end of its life of P 355. Determine the depreciation charge during the 4th year and the book value at the end of 4 years by: (b) Declining Balance Method;2. A vehicle is bought for $35, 500 and has a life of 4 years. Using the reducing balance method (a 45% charge is to be made each year) calculate the book value of the vehicle at the end of every year. Year Depreciation (amount %) Book Value (Total Depreciation) 1234B purchased a machine for $120,000 on 1 October 20X1. The estimated useful life is 4 years with a residual value of $4,000. B uses the straight-line method for depreciation and charges depreciation on a monthly basis. What is the charge for depreciation for the year ended 31 December 20X1? A $7,250 B $7,500 C $29,000 D $30,000
- Tory Enterprises pays $239,400 for equipment that will last five years and have a $43,700 salvage value. By using the equipment in its operations for five years, the company expects to earn $88,600 annually, after deducting all expenses except depreciation. Exercise 8-10 Double-declining-balance depreciation LO P1 Calculate annual depreciation expenses using double-declining-balance method.Prepare a table showing income before depreciation, depreciation expense, and net (pretax) income for each year and for the total five-year period, assuming double-declining-balance depreciation.Week 10Nevertire Ltd purchased a delivery van costing $52,000. It is expected to have a residual value of$12,000 at the end of its useful life of 4 years or 200,000 kilometres. Ignore GST.Required:a) Assume the van was purchased on 1 July 2019 and that the accounting period ends on 30 June.Calculate the depreciation expense for the year 2019–20 using each of the following depreciationmethods straight-line diminishing balance (depreciation rate has been calculated as 31%) units of production (assume the van was driven 78,000 kilometres during the financial year)b) Record the adjusting entries for the depreciation at 30 June 2021 using diminishing balancemethod. c) Show how the van would appear in the balance sheet prepared at the end of year 2 using Straight line method.Question15 Construct a depreciation schedule using the straight line method for a new lorry that costs $80,000 and has a salvage value of $8,000 at the end of 6 years.
