The pharmacy’s delivery van cost $12,000.00. Its estimated useful life is 10 years, and the disposal value is $1,500.00. What is the annual depreciation? (round to the nearest whole number) Group of answer choices $1,050.00 $3,000.00 $2,700.00 $11,850.00
Q: Darling Paper Container, Inc. purchased several machines at a total cost of $300,000. The…
A: Depreciable cost = $300000+$25000 = $325000
Q: Goodson Healthcare purchased a new sonogram imaging unit for $300,000 and a truck body and chassis…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Amachine whose cost is 80.000 nyals and s value as scrap is 5,000 ryals and its useful ife is 5…
A: Calculation of depreciation using the Double Declining Balance method: Year Depreciation…
Q: A numerically controlled milling machine was purchased for $95,000. The estimated salvage value was…
A: Book Value of Machinery: The initial cost of an asset is subtracted from its accumulated…
Q: Goodson Healthcare purchased a new sonogram imaging unit for $300,000 and a truck body and chassis…
A: Answer a) Calculation of Salvage Value Salvage Value = (Purchase price of Imaging Unit + Purchase…
Q: A company purchased a van at a cost of $42,000 and expects its salvage value to be $6,000 after…
A: The depreciation is a decline in the value of tangible assets over their useful life. it is a…
Q: The Fluffy Laundromat purchased new washing machines and dryers for $69,000. Shipping charges were…
A: Assets: Assets are the resources of an organization used for the purpose of business operations.…
Q: The equipment has a delivered cost of $58,000. An additional $4,000 is required to install the new…
A:
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: The price of a utility vehicle purchased by Knox Industries was $21,300. Its salvage value after…
A: Depreciation: Decreasing the value of fixed assets over its useful life period.
Q: A FedEx sorting machine that cost $10,000 with a useful life of five years and a residual value of…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: The cost of an asset is $1,070,000, and its residual value is $220,000. Estimated useful life of the…
A: GIVEN The cost of an asset is $1,070,000, and its residual value is $220,000. Estimated useful…
Q: 20. Fahtima has purchased a bottle filling machine for P5,000,000. The plant engineer estimates that…
A: Total cost of bottle = 5,000,000 Salvage value = 10,000 Depreciation per year = (Total cost -…
Q: A building with a cost of $112,500 has an estimated residual value of $22,500, has an estimated…
A: Under straight line method of depreciation, depreciation remains same every year. Straight line…
Q: The purchase of a motor for $10,911.6 and a generator for $5,998.22 will allow a company to produce…
A: Cost of motor = $10,911.6 Cost of generator = $5,998.22 Cost of assembling = $1,223.04 Salvage Value…
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: ontello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $5,000 and is…
A: Depreciation means decrease in the value of tangible fixed asset. It is provided due to the ware and…
Q: A Co. has bought $40,000 worth of computers and will have a salvage value of $10,000. The computers…
A: a. Straight Line Method - Formula = (Cost of Fixed Assets - Salvage Value)/ Useful Life b.…
Q: KFC purchased a new low-fat chicken cooker at a cost of RO 26,500. The estimated life of the fryer…
A: Given Cost = 26500 Life = 5 years
Q: A small truck is purchased for $17,000. The truck is expected to be of use to the company for 6…
A: Double Declining Balance Depreciation Method also is known as DDB depreciation, is the second…
Q: My question is this: GIPI will depreciate the gymnasium building using the straight-line method over…
A: Depreciation is an accounting technique for distributing a tangible or fixed asset's cost over its…
Q: The La Salle Bus Company has decided to purchase a new bus for $85,000 with a trade-in of their old…
A: Straight-line depreciation is the method of depreciation where the amount of depreciation remains…
Q: On the first day of its fiscal year, Spearhead Company purchased a new computer systemfor a total…
A: Methods of Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset…
Q: A factory has decided to purchase some new equipment for P650, 000. The equipment will be kept for…
A: Solution : We Can Calculate the WDV Deprecation rate by following Formulas. WDV Rate…
Q: The cost of an asset is $1,050,000, and its residual value is $280,000. Estimated useful life of the…
A: Depreciation means the amount expense out of cost of assets due to normal usage of assets , normal…
Q: An oil refinery has decided to purchase some new drilling equipment for $550,000. The equipment will…
A: Straight-line method: Under the straight-line method of depreciation, the same amount of…
Q: The Erley Equipment Company purchased a machine 5 years ago at a cost of $100,000. The machine had…
A: Given Old machine purchase price - $100,000 Life -10 years - remaining life 5 years Salvage value…
Q: A machine cost 75,000 and the salvage value is 15,000 after 15 years. Find, a) the depreciation by…
A: Cost of Machinery = 75,000 Salvage Value = 15,000 Note: Since, you have posted a question with…
Q: A plant bought a new equipment for P220,000and used it for 10 years, the life span of the equipment.…
A: Depreciation is a method of reducing the capitalized cost of long-lived operating assets or plant…
Q: Explain why fixed assets are depreciated.
A: Fixed assets are those assets that are held for more than one accounting period and provide the…
Q: Compute the annual depreciation expense under the straight‑line depreciation method
A: The straight line depreciation method is a method where the depreciation expense amount is the same…
Q: Company D recently purchased an equipment that costs $50,000, has a life of 4 years and a salvage…
A: A depreciation is a non-cash expenses for the company. The depreciation expenses is charged because…
Q: The purchase of a motor for $7,398.74 and a generator for $5,987.69 will allow a company to produce…
A: Depreciation as per streight line method is given by D = (C - S)/n Where C = depreciatiable cost =…
Q: A building with a cost of $900,000 has an estimated residual value of $360,000, has an estimated…
A: a. Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected…
Q: An oil refinery has decided to purchase some new drilling equipment for $550,000. The equipment will…
A: Working Note:
Q: Company D recently purchased an equipment that costs $50,000, has a life of 4 years and a salvage…
A: In this we need to find out depreciation based on the number of units.
Q: Calculate depreciation for the second year using the double-declining-balance method of…
A:
Q: A small delivery van can be purchased for $14,000. At the end of its useful life (8 years), the van…
A: a) Straight - Line depreciation method Depreciation per annum = Cost - salvage value/ useful life…
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: A new machine costs $12,000 and has a $1300 salvage value at the end of its 8-year useful life.…
A: Depreciation:-It is an expense incurred in the normal use of fixed assets. The whole value of the…
Q: Some special handling devices can be obtained for $20,000. At the end of 5 years, they can be sold…
A:
Q: Ultra-clean special handling devices used in the filling process for the manufacture of baby food…
A:
Q: Cheetah Copy purchased a new copy machine. The new machine cost $140,000 including installation. The…
A: Under double-declining-balance method : Depreciation (for first year) = 2 X Cost of asset X…
Q: A building with a cost of $1,200,000 has an estimated residual value of $250,000, has an estimated…
A: a. Calculate the amount of annual deprecation.
Q: Goodson Healthcare purchased a new sonogram imaging unit for $300,000 and a truck body and chassis…
A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…
Q: Anne Company has an equipment costing P700,000 with an estimated residual value of P70,000 and an…
A: The Accumulated depreciation is calculated as sum of Depreciation expense for past years. The book…
Q: Kelly’s Fitness Center purchased a new step machine for $16,500. The apparatus is expected to last…
A: The cost of an asset include all the cost incurred till the asset are ready for intended use. After…
Q: manufacturer of aerospace products purchased four flexible assembly cells for $530,000 each.…
A: The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…
Q: A plant bought a calciner for P220,000 and used it for 10 years, the life span of the equipment.…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Step by step
Solved in 2 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 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.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.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.
- 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).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 $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.
- 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.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?Alfredo Company purchased a new 3-D printer for $900,000. Although this printer is expected to last for ten years, Alfredo knows the technology will become old quickly, and so they plan to replace this printer in three years. At that point, Alfredo believes it will be able to sell the printer for $15,000. Calculate yearly depreciation using the double-declining-balance method.
- 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.Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual value was 500 and its expected service life was 5 years. Hathaway computes depreciation expense to the nearest whole month. Required: 1. Compute depredation expense (rounded to the nearest dollar) for 2019 and 2020 using the: a. straight-line method b. sum-of-the-years-digits method c. double-declining-balance method 2. Next Level Which method produces the highest book value at the end of 2020? 3. Next Level Which method produces the highest charge to income in 2020? 4. Next Level Over the life of the asset, which method produces the greatest amount of depreciation expense?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. Dunedin buys equipment frequently and wants to print a depreciation schedule for each assets life. Review the worksheet called DEPREC that follows these requirements. Since some assets acquired are depreciated by straight-line, others by units of production, and others by double-declining balance, DEPREC shows all three methods. You are to use this worksheet to prepare depreciation schedules for the new machine.