The purchase price of an equipment is $45,000 which is expected to drop to $12,000 after 10 years of use. If the applicable depreciation method is the straight line depreciation, what is the book value of this equipment at the beginning of the 6th year? O a $25,200 O b. $19,800 OC S16,500 O d. $28,500 O e. $3,300

Q: A depreciable property costing P2,600,000 with original scrap value of P200,000 after 15 years, ha…

A: DEPRECIATION: It is the reduction in the value of fixed assets due to its continuous use. It is…

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A: Introduction:- The following formula used to calculate depreciation usi g straight line method as…

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A: Cost basis: It can be defined as the original or actual value of an asset measured for the purpose…

Q: On July 1, 2022, Proton, Inc. sells equipment for P44,000. The equipment originally cost P120,000,…

A: Given: - Cost= 120,000 Accumulated Depreciation=70,000 Salvage value=20,000 Useful life= 5 years

Q: Purchased equipment is cost P515 800 and expected to have 15 years of economic life with 12% annual…

A: THE DECLINING BALANCE METHOD IS ALSO CALLED REDUCING BALANCE METHOD OR DIMINISHING BALANCE METHOD .…

Q: Q1/The cost of a vehicle at the time of purchasing is (80,000)$, its expected useful life is (10)…

A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred due to the wear and tear…

Q: The cost of an asset is $1,050,000, and its residual value is $280,000. Estimated useful life of the…

A: Formula: Depreciation rate = ( 100 / Useful life ) x 2

Q: Angels Inc. purchases a piece of equipment for $65,000. The equipment has an expected useful life of…

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Q: An asset has a cost of $60.000 with a residual value of $12,000. It has a life of 5 years and was…

A: As per double declining rate, the depreciation is calculated as follows: Double-declining…

Q: A depreciable property costing P1,400,000 with original residual value of P80,000 after 10 years,…

A:

Q: The equipment has a purchased price of P530 000 and expected to have 13% ann depreciation rate.…

A: Introduction:- Depreciation is a non cash expenditure. Which id charged on fixed assets over a…

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A: When the asset's market value changes then it gives revaluation loss or revaluation surplus.

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A: Depreciation: Decreasing the value of fixed assets over its useful life period.

Q: Tiffany bought a piece of equivalent for $40,000. The equipment has a useful life of 5 years ane a…

A: Answer) Calculation of Depreciation expense for Year 1 Depreciation expense for year 1 = Original…

Q: The cost of an asset is $1,090,000​, and its residual value is $240,000. Estimated useful life of…

A:

Q: 1. An equipment costing P750,000 has a life expectancy of 6 years. Using the sum-of-year’s digit…

A: Sum of the useful life=6+5+4+3+2+1=21 Depreciable base =Cost of the asset-Salvage value In the sum…

Q: A tractor for over-the-road hauling is purchased for $75,000.00. It is expected to be of use to the…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. Fixed assets…

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Q: An asset is purchased for P500,000.00. The salvage value in 25 years is P100,000.00. What is the…

A: The question is related to Depreciation. The details are given as under  Cost of Asset = P500000…

Q: Using the double declining balance depreciation method for an asset purchased at the start of 1019…

A: Double Decline Method: When using the double-declining balance technique, which is a type of the…

Q: DEPRECIATION: Company L purchased equipment for 150,000 on 1/1/2020. The equipment has a useful life…

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

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A: In the double declining method the beginning value of the period i.e. is (Value of equipment -…

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A: Depreciation as per straight line method = (cost - salvage value)/life = (2500 - 500)/5 = 400

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A: Initial Cost = P 1,000,000 Salvage value = P100,000. Time Period = 10 Years

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A: Annual depreciation = (Asset Cost-Salvage value )/Life of the asset

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A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

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Q: In the beginning of 2021, Ciento Company purchased equipment worth P250,000. It is estimated to be…

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Q: 10. Gingerbread Corp purchased a refrigerated truck on January 1, 2019 for $70,000.  The company…

A: Depreciation per year=Cost-Salvage valueUseful life=$70,000-$20,0005=$10,000

Q: A depreciable property costing P2,600,000 with original scrap value of P200,000 after 15 years, had…

A: Here discuss about the details of the annual depreciation expenses which are incurred after the…

Q: The cost of an asset is $1.200,000, and its residual value is $180,000. Essmated usetul ife of the…

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A:

Q: A broadcasting corporation purchased equi pment worth P57, 000 and paid P1, 500 for freight and…

A: Answer a) Calculation of Annual Depreciation Cost Annual Depreciation Cost = (Purchase price +…

Q: On July 1, 2020, Hale Kennels sells equipment for $80,000. The equipment originally cost $300,000,…

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Q: depreciation charge and its book value after 10 years using straight-line method

A: Annual depreciation = (Cost of the fixed asset - Salvage value)/Useful life

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Q: An equipment costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the…

A: Depreciation is the reduction or allocation of cost of asset over the useful life of the asset.…

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A: The value of an asset is decreases due to use, wear and tear and this decreases value is known as…

Q: A set of office equipment costs $80,000 and has a useful life of 8 years. Its estimated market value…

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Q: A vehicle is purchased for $25,000 and its price is expected to drop to $4,000 after 20 years of…

A: Depreciation is a non-cash expense which is charged against the use of the fixed assets of the…

Q: A depreciable property costing P2,600,000 with original scrap value of P200,000 after 15 years, had…

A: Option C: 198,000 Life per appraisal = 4 years/ 20% = 20 years Remaining life per appraisal (20-4)…

Q: XZelent Corporation purchased equipment at a cost of P18M. The cost of repairs amounted to P2.5M.…

A: Sum of Years Depreciation (SYD): It is an accelerated depreciation technique. The dual decreasing…

Q: A tractor for over-the-road hauling is purchased for $80,000.00. It is expected to be of use to the…

A: Straight Line Depreciation = Cost of Tractor - Salvage ValueUseful life   Declining Balance…

Q: What is the asset salvage value at the end  of its useful life,which is 10 years?

A: Declining balance depreciation Method- Under this method, Annual depreciation is calculated as a…

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Q: the ROS On January 1, 2020 P1,000,000. The useful life is expected to be 10 years. On July 1, 2025,…

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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.