What are the depreciation allowances and book values for the SMP machine using MACRS depreciation with 50% and 100% bonus depreciation?
Q: Consider an asset with a cost basis of $10,000 that has been depreciated using 100% bonus…
A: The bonus deduction allows deducting 100% of the cost in the first year instead of different years…
Q: A company is considering two alternatives with regards to an equipment which it needs. The…
A: Equivalent annual worth of both alternatives should be same for calculation of project A to be…
Q: Assume that you have purchased an asset for OMR 10000 and expecting the useful life of 10 years. If…
A: Depreciation is charged on as asset due to obsolescence or uses of an asset over a period of time.
Q: Determine the capitalized cost of a new engine that costs P300,000.00 and the projected useful life…
A: Capitalized cost are cost incurred on fixed assets upto the use of assets. Its includes cost of…
Q: A machine having a certain first cost FC has a life of 10 years and a salvage value of 6% of the…
A: Let the first cost be x Salvage value (SV) = 0.06 Life (n) = 10 years BV at the end of 6th year =…
Q: Use the MACRS to calculate the yearly depreciation allowances and book values for a firm that has…
A: Given information is: A firm that has purchased $150,000 worth of office equipment that does not…
Q: An asset will cost $1750 when purchased this year. It is further expected to have a salvage value of…
A:
Q: What is the decision criteria for Payback Period (PBP) method? A construction company is…
A: According to the payback period decision, a project should be selected only if it can recover the…
Q: If a Cross-Fit project is at the end of its 5-year tenure in a rented building, worth BDS $1500.00…
A: The residual value, also popularly referred to as salvage value, is the determined value of a fixed…
Q: A machine has a first cost of P400,000 and a salvage value of P46,000 17 years from now. If the…
A: Annual depreciation = ( Cost - Salvage value )×interest rate ( 1 + interest rate ) ( usefull life -…
Q: A machine has a first cost of P36,000 and a salvage value ofP4,000 after 8 years. Find the annual…
A: Formula: Straight line method depreciation expense = ( Asset cost - Salvage value ) / Useful life…
Q: Compute the depreciation for the forecast 3 years for an asset pf 10700 costs the asset life 10…
A: The depreciation expense is the reduction in the value of a fixed asset with the passage of time.
Q: A photocopier costs E03 00a It will be kept for Hyeqrs, and then traded-in for Et o00. Show the…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: A machine costing P 733,615 is estimated to have a life of 10 years. If the annual rate of…
A: Under Constant percentage of declining balance method, to calculate depreciation for current year,…
Q: 1. An equipment has a first cost of P500,000 and the cost of installatic is P30,000. If the salvage…
A: Installation cost =P500000 First cost = P30000 Salvage cost = 10%equipment cost Useful life = 5…
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: 9Computers worth $50,000 are eligible for 20% bonus depreciation plus MACRS. Determine the…
A: Depreciation: It refers to the allocation of the value of any asset over its useful life. It reduces…
Q: A certain asset valued at P 12,000.00 with a 4-year life, is estimated to have a scrap value of P…
A: solution given cost of asset (P) =12,000 salvage value (L) =600 n…
Q: A boiler was installed at a cost of $500,000 with a 5-year recovery period. If MACRS depreciation is…
A: Depreciation schedule: Year Dep rates (MARC %) Depreciation Ending book value 1 20% 500,000*20%…
Q: Which equipment with the estimated life of 10 years, will you choose from the following using annual…
A: Capital budgeting refers to the investment decision about capital expenditure. The selection of the…
Q: The initial cost of a paint sand mill, including its installation is P 700,000.00 . The BIR approved…
A: The calculation of annual depreciation under straight line method has been made as follows: Annual…
Q: Either machine is to be used for a total 10 years, then sold for the estimated salvage value. The…
A: Present worth analysis is an equivalence technique to discount a project’s future cash flows to a…
Q: achine having a certain first cost FC has a life of 10 years and a salvage value of 6% of the cost…
A: Depreciation- Depreciation is defined as the decrease in the monetary worth of a fixed asset until…
Q: The constant percentage method will be used to depreciation a machine with an initial cost of P 1.2…
A: Depreciation refers to the method which results in decrease in the value of the asset over the…
Q: I am using MACRS for depreciation. Purchase date: September 1st Cost: $650,000 Salvage: $30,000…
A: Depreciation: Depreciation is the reduction in the value of the asset due to factors like wear and…
Q: What is the average amount invested in a machine during its predicted five-year life if it costs…
A:
Q: If the cost of the truck is OMR 30,000 and the annual depreciation expense OMR 2,000. How much will…
A: Book Value = Cost of Truck - Depreciation Expense
Q: nt has a first cost of P 12,000 and a salvage value of P 500 at the end of x years. What is the…
A: Sinking fund is a method of reducing the value of an asset while making a profit to return it when…
Q: If the first cost of an asset is $15,000, and an annual operating cost of $5000 with a salvage value…
A: First cost = $15,000 Annual operating cost = $5000 Salvage value = $3000 Time period = 5 years…
Q: eed to do replacement analysis to determine which option is the best financial decision for the…
A: NPV:- A set of cash flows occurring at different dates is given a net present value (NPV) or net…
Q: A machine costs $20,000. The machine can be disposed of after 2 years for $10,000. What is the…
A: Answer 1)
Q: The initial cost of paint sand mill, including its installation is, P800 000.00. The BIR approved…
A: A non-current asset is a fixed asset acquired by a business entity to support its business…
Q: A sala set is costs P80,000. Its estimated scrap value is P5,000 after 10 years. Solve for the…
A: Sinking fund method of depreciation includes the setting aside of a fund apart from computing the…
Q: if a company is considering buying a system that costs 450,000 with an estimated 10-year life and a…
A: Annual cash outflow = incremental expenses - depreciation = 123000 - 38000 = 85,000
Q: If an asset cost £27,000 with no scrap value, and the annual depreciation charge calculated using…
A: Under straight line method of depreciation, cost of asset will be charged as depreciation over the…
Q: Consider a 5-year MACRS property asset with an installed and “made ready for use” cost basis of…
A: Depreciation by MACRS permits the capitalized expense of an asset to be compensated by annual…
Q: ote: Calculate the
A: Net Present Value: Net present value (NPV) refers to the distinction between the present value of…
Q: rom the following facts, for straight-line depreciation, what is: Given: Cost - $ 35,000…
A: Solution: Depreciation means the cost of wear and tear of the property, plant and equipment of firm.…
Q: An asset costing P50,000 has a life expectancy of 6 years and an estimated salvage value of P8,000.…
A: C = 50,000 S = 8,000 Life expectancy = 6 Depreciated value = D
Q: A certain machine has a first cost of 30,000; annual costs of 6,000; a salvage value of 4,000 and a…
A: Depreciation refers to the allocation of the assets value over the expected or the useful life of…
Q: Calculate The second year (2021) of depreciation on a computer costing $5,000 purchased in May 2020,…
A: Depreciation is the charge for normal wear and tear expenses along with repairs and maintenance of…
Q: If an asset cost €27,000 and the annual depreciation charge calculated using the straight-line…
A: Every fixed asset loses its value over a period of time. Depreciation is charged to record a…
Q: P18,000. As a percentage of the initial cost, what is the straight-line depreciation rate of the…
A: Depreciation: It is the expense charge on the asset over the period of life. This expense…
What are the
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- At the end of the expected useful life of a depreciable asset with an estimated 15% residual value, the accumulated depreciation would equal the original cost of the asset under which of the following depreciation methods?If the replacement cost of the machine on 31st December 2019 was OMR 70,000 and on 31st December 2020 was OMR 100,000, then how much will be the amount of depreciation under CCA at 20% rate of depreciation on 31st December 2020. a. OMR 10,000 b. OMR 3,000 c. OMR 14,000 d. OMR 17,000Why do you think the 150% DB method is used as thebasis for depreciation for 15-year and 20-year classes ofequipment?
- Assume that you have purchased an asset for OMR 10000 and expecting the useful life of 10 years. If you have charged the total depreciation of OMR 8000 over its useful life, calculate the residual value of the asset. a. OMR 18000 b. OMR 8000 c. OMR 20000 d. OMR 2000Use the appropriate function in Excel (=SLN) to calculate the annual straight-line (SL) depreciationcharge for an asset that has a $10,000 acquisition cost, an estimated salvage value of $500, and auseful life of 4 years.Use the MACRS to calculate the yearly depreciation allowances and book values for a firm that has purchased $150,000 worth of office equipment that does not qualify for 100% bonus depreciation. The equipment is estimated to have a salvage (market) value of $30,000 (20% of the original cost) after 10 years.
- A depreciable asset has a cost of P120,000, estimated useful life of 8 years, and an estimated residual value of P20,000.1. What is the depreciation rate if you are using the straight line method?2. What is the depreciation rate if you are using 150% declining balance method?3. What is the depreciation rate if you are using double declining balance method?Note: For nos. 1 to 3, the rate must be rounded off to two decimal places. Ex: 10.00%, 12.30%, 15.55%4. What is the depreciation rate if you are using the declining balance method?Note: For no. 4, the rate must be rounded off to 6 decimal places. Ex: 10.123456%5. Using SYD method, what is the depreciation expense for the 1st year?6. Using SYD method, what is the carrying amount at the end of the 6th year?7. Using double declining balance method, what is the carrying amount at the end of the 3rd year? Subparts 6-7onlyA depreciable asset has a cost of P120,000, estimated useful life of 8 years, and an estimated residual value of P20,000.1. What is the depreciation rate if you are using the straight line method?2. What is the depreciation rate if you are using 150% declining balance method?3. What is the depreciation rate if you are using double declining balance method?Note: For nos. 1 to 3, the rate must be rounded off to two decimal places. Ex: 10.00%, 12.30%, 15.55%4. What is the depreciation rate if you are using the declining balance method?Note: For no. 4, the rate must be rounded off to 6 decimal places. Ex: 10.123456%5. Using SYD method, what is the depreciation expense for the 1st year?6. Using SYD method, what is the carrying amount at the end of the 6th year?7. Using double declining balance method, what is the carrying amount at the end of the 3rd year?Assuming the machine is depreciated using SYD and estimated residual value of P120,000 after its 6 years of physical life. The recoverable amount of the machine at the end of 2022 and 2023, respectively were P3,100,000 and P2,400,000. What is the amount of gain on recovery and revaluation surplus for the period ending December 31, 2023?
- The initial cost of a machine is 30000 TL, its depreciation life is 7 years and its scrap value is 1500 TL. Calculate the double declining balance depreciation allowance.Consider an asset with a cost basis of $10,000 that has been depreciated using 100% bonus depreciation. What is the gain or loss if the asset is disposed of after 5 years of operation for (a) $7000, (b) $0, and (c) a cost of $2000?The following are the relevant data of two alternative machines are shown in the table below. Determine which is the better machine if T=40%, a CFAT MARR of 10%, and SL as a depreciation method. What is the depreciation per year? Note: Calculate the CFAT thru tabular method. Use AW for solving.
