The cost of the printing equipment is P500,000 and the cost of handling and installation is P30,000. If the book value of the equipment at the end of the 3rd year is P242,000 and the life of the equipment is assumed to be 5 years, determine the salvage value of this equipment at the end of 5 years
Q: An equipment costs P7000 and has a life of 8 years and salvage value of x after 8 years. If the book…
A: Depreciation expense (sum-of-the-years' digits method ) = (Cost of the assets - Salvage…
Q: A machine costs P1,800,000. It has a salvage value of P300,000 at the end of 5 years. If money is…
A: Solution: Cost of machine = P1,800,000 Depreciation rate - SLM = 1/5 = 20% Depreciation rate - DDB…
Q: An industrial plant bought a generator set for P90,000. Other expenses including installation…
A: SYD Method means Sum of years digits method of charging depreciation.
Q: A piece of equipment has a first cost of P500,000 and the cost of installation is P30,000. If the…
A: Depreciation (Straight Line Method) = (Cost-Salvage Value) / Useful life Depreciation (Sinking Fund…
Q: The price of a system of jockey pumps is P5,500,000. PLM decided to purchase this system and spent…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: A printing machine is bought at P 1.5 million and is estimated to have a salvage value of P100,000…
A: The accumulated annual depreciation expense based on units produced is calculated by first dividing…
Q: The cost of the building is OMR 20,000. The salvage value OMR 2,000. Estimated useful life of the…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: An old machine may be repaired at a cost of P 9,000 or it may be replaced by a modern machine of the…
A: The repair cost of the old Machine = P9,000 Salvage Value of Old Machine (Present) = P13,000 Salvage…
Q: A machine costing P1,500,000.00 has an estimated economic life of 7 years. If the salvage value is…
A: The depreciation on fixed assets can be computed using various methods as straight line method,…
Q: The first cost of a machine is Php 1,800,000 with a salvage value of Php 400,000 at the end of its…
A: Depreciation = C × (S/C)m/n C = original cost S = scrape value n = life of property in years m =…
Q: The equipment is worth P56,000 with a salvage value of P15,000 at the end of 5 years. If the…
A: Cost of Equipment 56000 Less: Salvage value 15000 Depreciable value 41000 Estimated life 5…
Q: A printing machine is bought at P 1.3 million and is estimated to have a salvage value of P100,000…
A:
Q: An asset was purchased for P1,000,000.00 to be retired at the end of 15 years with a salvage value…
A: Discount rate = 8% Annual operating cost = 180,000 Salvage Value = 40,000 Purchase Price (initial…
Q: San Jose Builders imported a backhoe for his job, paying P2,500,000.00 to the manufacturer. Freight…
A: The total cost of the imported backhoe: The price paid to the manufacturer 2,500,000.00 Add:…
Q: A lathe machine cost P300,000 with a salvage value of P15,000 is expected to last for 285000 hours…
A: The depreciation expense is charged on fixed assets as reduction in the value with the usage and…
Q: ABC Corporation purchases a machine worth P 1,500,000. The freight cost is P 100,000 and set-up…
A: Purchase price = P 1,500,000 Freight cost = P 100,000 Set up charges = P 250,000 Salvage value = P…
Q: An engineer bought equipment for P500,000. He spent an additional amount of P30,000 for installment…
A: The value at which an asset can be sold at the end of its useful life is known as the salvage value.…
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 piece of certain equipment has the first cost of ₱90,000 and a salvage value of ₱4,500 at the end…
A: Depreciation = ( Historical cost - Salvage value)/Useful life Book value = Historical cost -…
Q: An equipment has a first cost of Php20,000 and has a salvage value of Php2,000 after 10 years. What…
A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…
Q: An asset costs $100,000 and has a useful life of 10 years. The salvage value at the end of 10 years…
A: Modified Accelerated Cost Recovery System (ACRS), has prescribed rate of depreciation that is apply…
Q: At the end of its economic life of P45,000 operational hours, an item costing P500,000 has a salvage…
A: Let's understand some basic Depreciation is an accounting method of allocating the cost of a…
Q: An engineer bought an equipment for P500,000. Other expenses including installations amounted to…
A: Depreciation Expense = Cost - Salvage ValueUseful Life
Q: An equipment costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the…
A: The question is based on the concept of Depreciation Accounting.
Q: The cost of a Tajima embroidery machine is P1.2M and the cost of installation is P50,000. If the…
A: Given that, Cost of the machinery = P1200000 Cost of installation = P50000 Salvage value = 10% of…
Q: A machine costs Php 300,000 with a salvage value of Php 50,000 at the end of its life of 10 years.…
A: Machine cost (C) = Php 300000 Salvage value (S) = Php 50000 n = 10 years r = 6%
Q: An asset is purchased for Php50,000. The salvage value in 25 years is Php100,00. What are the…
A: Purchase price = Php 50,000 Salvage value = Php 10,000 Life = 25 Years
Q: An engineer bought equipment for P500,000. Other expenses including installation amounted to…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: The salvage value of the equipment is P100,000 with a service life of 10 years. The annual…
A: The question is based on the concept of Depreciation Accounting.
Q: An asset with a first cost of $50,000 is to be depreciated by the straight line method over a 5-year…
A:
Q: The initial cost of a piece of construction equipment is P30,000,000 having a useful life of 10…
A: Sinking Fund Method: It is possible to depreciate an asset while simultaneously earning enough money…
Q: A machine bought at P420,000 has an economic life of 6 years with a salvage value of P50,000. Cost…
A: Depreciation is the decrease in the value of assets due to its use or obsolescence.
Q: An equipment costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the…
A: Equipment cost = P 250,000 Book value at the end of period = P 30,000 Depreciable value =…
Q: A machine costs P 1, 500, 000. It has a salvage value of P600, 000 at the end of its economic life.…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: An equipment was bought at a cost of P 200,000 with an estimated life of 20 years. It had an income…
A: Depreciation: A depreciation is a non-cash expenses for the company. The depreciation expenses is…
Q: An equipment in a power station costs Ksh.1,560,000 and has a salvage value of Ksh.60,000 at the end…
A: Given information is: An equipment in a power station costs Ksh.1,560,000 and has a salvage value of…
Q: An electronics balance costs P88,000 and has an estimated salvage value of P10,000 at the end of ts…
A: Depreciation = ( Cost of the asset - Salvage value ) * Number of years left / Sum of years
Q: The machine cost 20,000 pesos with a useful life of 10 years. If the book value at the end of 6th…
A: Depreciation is the reduction in value of tangible fixed assets in a financial period due to wear…
Q: An equipment was bought at a cost of P 201,050 with an estimated life of 20 years. It had an income…
A: Annual Depreciation expense under straight line method (SLM) is calculated as under: = (Original…
Q: The equipment in a power station costs 850000 S and has a salvage value of Q5 7000 $ at the end of…
A: Depreciation is the reduction in the value of fixed assets due to normal wear and tear, passage of…
Q: An equipment costs P400,000 and has a life of 30,000 hrs at the end of which its salvage value is x…
A: Answer) Calculation of Salvage Value of Equipment Depreciable value of Equipment = Original cost of…
Q: A printing equipment cost P500,000 and the cost of handling and installing is P30,000. The life of…
A: Depreciation is charged to record reduction in value of fixed assets over the period of time.…
Q: An item's initial cost is P 800,000, and its market worth after 5 years is P 507,630. Determine the…
A:
Q: The first cost of a machine is P1,800,000 with a salvage value of P300,000 at the end of its life of…
A: Rate of depreciation under declining balance method = 1useful life ×100 = 15×100 = 20% Sum of useful…
Q: A man bought an equipment which cost P524,000.00 Freight and installation expenses cost him…
A: Given: Cost of equipment = P524,000 Installation expenses = P31,000 Years = 15 Salvage value =…
Q: An engineer bought equipment for P600,000. Other expenses including installation amounted to…
A: Depreciation accounting is an important component of valuation of fixed assets that are involved in…
Q: An engineer bought equipment for P500,00O. HE spent an additional amount of P30,000 for installation…
A: Total cost of the equipment = P500,000 + P30,000 = P530,000 Annual depreciation = Total…
Q: The first cost of a certain machine is P20,000 with a salvage value of P1,000 at the end of its…
A:
The cost of the printing equipment is P500,000 and the cost of handling and installation is P30,000. If the book value of the equipment at the end of the 3rd year is P242,000 and the life of the equipment is assumed to be 5 years, determine the salvage value of this equipment at the end of 5 years
Step by step
Solved in 4 steps
- Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for ten years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.
- Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After three years of recording depreciation, Montezuma determines that the delivery truck will only be useful for another three years and that the salvage value will increase to $4,000. Determine the depreciation expense for the final three years of the assets life, and create the journal entry for year four.Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.
- Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?Urquhart Global purchases a building to house its administrative offices for $500,000. The best estimate of the salvage value at the time of purchase was $45,000, and it is expected to be used for forty years. Urquhart uses the straight-line depreciation method for all buildings. After ten years of recording depreciation, Urquhart determines that the building will be useful for a total of fifty years instead of forty. Calculate annual depreciation expense for the first ten years. Determine the depreciation expense for the final forty years of the assets life, and create the journal entry for year eleven.Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value at the time of purchase was $15,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. Calculate annual depreciation expense for the first four years. Determine the depreciation expense for the final fifteen years of the assets life, and create the journal entry for year five.
- Montezuma Inc. purchases a delivery truck for $20,000. The truck has a salvage value of $8,000 and is expected to be driven for ten years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After five years of recording depreciation, Montezuma determines that the delivery truck will be useful for another five years (ten years in total, as originally expected) and that the salvage value will increase to $10,000. Determine the depreciation expense for the final five years of the assets life, and create the journal entry for years 6–10 (the entry will be the same for each of the five years).Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. With DEPREC5 still on the screen, click the Chart sheet tab. This chart shows the accumulated depreciation under all three depreciation methods. Identify below the depreciation method that each represents. Series 1 _____________________ Series 2 _____________________ Series 3 _____________________ When the assignment is complete, close the file without saving it again. Worksheet. The problem thus far has assumed that assets are depreciated a full year in the year acquired. Normally, depreciation begins in the month acquired. For example, an asset acquired at the beginning of April is depreciated for only nine months in the year of acquisition. Modify the DEPREC2 worksheet to include the month of acquisition as an additional item of input. To demonstrate proper handling of this factor on the depreciation schedule, modify the formulas for the first two years. Some of the formulas may not actually need to be revised. Do not modify the formulas for Years 3 through 8 and ignore the numbers shown in those years. Some will be incorrect as will be some of the totals. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as DEPRECT. Hint: Insert the month in row 6 of the Data Section specifying the month by a number (e.g., April is the fourth month of the year). Redo the formulas for Years 1 and 2. For the units of production method, assume no change in the estimated hours for both years. Chart. Using the DEPREC5 file, prepare a line chart or XY chart that plots annual depreciation expense under all three depreciation methods. No Chart Data Table is needed; use the range B29 to E36 on the worksheet as a basis for preparing the chart if you prepare an XY chart. Use C29 to E36 if you prepare a line chart. Enter your name somewhere on the chart. Save the file again as DEPREC5. Print the chart.For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: A. A patent with a seventeen-year remaining legal life was purchased for $850,000. The patent will be usable for another six years. B. A patent was acquired on a new tablet. The cost of the patent itself was only $12,000, but the market value of the patent is $150,000. The company expects to be able to use this patent for all twenty years of its life.