What is the asset salvage value at the end of its useful life,which is 10 years?
Q: An asset costing $20,000 has estimated useful life of 5 years and salvage value of $4,500. Calculate…
A: >Accounting principle states that the cost of the long term assets (like equipment) is to be…
Q: What is the book value of equipment purchased 7 years ago for $14,146 if it is depreciated using the…
A: Sum-of-the-years'-digits = 1+2+3+4+5+6+7+8+9+10 = 55 years
Q: The book value of an asset that is listed as a 10-year MACRS property is $49,500 after the first…
A: Cost basis: It can be defined as the original or actual value of an asset measured for the purpose…
Q: A machine, purchased for $11,000, has a depreciable life of 5 years. It will have an expected…
A: As per the double-declining method, the depreciation rate is charged at a double rate of the…
Q: The purchase price of an equipment is $45,000 which is expected to drop to $12,000 after 10 years of…
A:
Q: Company B recently acquired a small equipment that costs $30,000. The asset has a life of 10 years…
A: The depreciation reduces the value of assets with tear off and usage of assets with passage of time.
Q: A surveillance equipment bought by FabLab Mindanao 2 years ago has been book-depreciated by the…
A: Depreciation: Depreciation is the decrease in the market value of fixed assets due to the reasons…
Q: A company paid $50,000 for some research equipment, which it believes will have zero salvage value…
A: Depreciation is expense arising because of the wear and tear of the asset. If the assets are used…
Q: Compute the 175% DB depreciation schedule for an asset with the followingdata:Cost of the asset, I…
A: 175% DB depreciation means 175% Declining balance method = 1.75 times of straight line…
Q: What is the book value of equipment purchased 7 years ago for $21,952 if it is depreciated using the…
A: Equipment cost = $ 21,952 Life = 10 Years Sum of years digit = (10*11)/2…
Q: What is the depreciation of equipment purchased at 9 years ago for $79,010 if it is depreciated…
A: As per the SOYD method the annual depreciation % each year = remaining estimated useful life at the…
Q: The purchase price of an equipment is $45,000 which is expected to drop to $13,000 after 10 years of…
A: Purchase Price = 45,000 Salvage Value = 13,000 Time Period = 10 years
Q: Determine the rate of depreciation, the total depreciation up to the end of the 8th year and the…
A: Depreciation is the reduction in the value of fixed assets due to more wear and tear, passage of…
Q: 5. An electronic balance costs P90, 000 and has an estimated salvage value of P10, 000 at the end of…
A: Annual depreciation = (P90,000 - P10,000) / 10 years = P8,000
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: c) In practice, would you expect the depreciation expense for a non-current asset to be…
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Q: 3. An equipment with a price of P650,000, has an economic life of 5 years and a salvage value of P…
A: Solution.. Cost = P650,000 Life = 5 years Rate of depreciation = 200% ÷ life = 200% ÷ 5 =…
Q: The rate of depreciation of a building is given by D'(t) = 3000(10 – t) dollars per year, 0sts 10;…
A: Total depreciation in n years will be the area of trapezium formed with both the axes, the line of…
Q: KFC bought an equipment for 2500 RO. Its useful life is 5 years and the salvage value is 500 RO.…
A: Depreciation as per straight line method = (cost - salvage value)/life = (2500 - 500)/5 = 400
Q: 3. An asset costs $150,000 and has a salvage value of $15,000 after 10 years. What is the…
A: Higher depreciation in earlier years in sum of years digit method. Same depreciation in straight…
Q: The purchase price of an equipment is $45,000 which is expected to drop to $12,000 after 10 years of…
A: Book Value = Book Value is the value of the fixed assets at the end of the accounting year. Book…
Q: What is the depreciation of equipment purchased 5 years ago for $50,264 if it is depreciated using…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: 1. A machine has a first cost of P 600,000.00 and a salvage value of P 60,000.00 at the end of…
A: "Since you have asked multiple question we will solve the first question for you. If you want any…
Q: What is the value of an asset after 8 years of use if it depreciates from its original value of…
A: Carrying Value = [ Asset Value - Depreciation till date ]
Q: If an asset is book depreciated by the DDB (Double Declining Balance) method over a 5-year period,…
A: Depreciation is a method to represent the reduction in value of the asset. This is a way that is…
Q: 1. The cost of an asset is Php 200,000 while the estimated salvage value is Php 15,000 and it can…
A: Depreciation is the allocation of cost of asset over the useful life. It can be charged by various…
Q: A company has purchased a capital asset for $21.2 million. The asset belongs to the 5-year MACRS GDS…
A:
Q: company B recently acquired a small equipment that costs $30,000. eclining balance depreciation is…
A: In this first we have to calculate the straight line depreciation and from that we can get double…
Q: What is the book value of equipment purchased 7 years ago for $18,791 if it is depreciated using the…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: An asset is purchased for $500,000. Salvage in 25 years is $100,000. What are the depreciation in…
A: Calculate the depreciation as per single line method as follows: Formulas:
Q: A certain equipment has a first cost of P 12,000 and a salvage value of P 500 at the end of x years.…
A: Equipment cost = P 12,000 Salvage value = P 500 Annual depreciation = P 1,437.5 Life = x
Q: If a condensing unit was bought at 50,000 having a useful life of 5 years and a salvage value of…
A: Following are the main points of straight-line depriciation methods:- In the Straight-line method,…
Q: What is the value of an asset after 8 years of use if it depreciates from its original value of…
A: Salvage value = 120,000 x 3% = 3,600 Annual depreciation using straight line method = (Cost -…
Q: A new barcode reading device has an installed cost basis of $20,670and an estimated service life of…
A: Double declining balance method is a method which is used to determine the value of depreciation…
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: Consider a piece of equipment that costs $60,000. The estimated salvage value after six years is…
A: Double Declining Balance Method the depreciation is computed by the formula: DDB = 2Useful life of…
Q: What is the value of an asset after 8 years of use if it depreciates from its original value of…
A:
Q: A company purchases an asset for P 10,000.00 and plans to keep it for 20 ars. If the salvage value…
A: Solution: Sum of year of digit for 20 years = 1+ 2 + 3 +........+20 = 210 Useful life remains in…
Q: A machine was purchased for 100,000 and has a salvage value of 20,000 what is the total depreciation…
A: Sinking Fund Method is a depreciation method wherein funds will accumulate for replacement…
Q: What is the book value of equipment purchased three years ago for $15,000 if it is depreciated using…
A: Equipment Cost is $15,000(Equipment purchased three years ago) Expected Project life is 5 years.…
Q: Please assist in solving the problem below. Thanks Bramble Corp. purchased a depreciable asset for…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: 2) An asset has an initial cost of $60,000, a salvage value of $5,000, and a depreciation life of 6…
A: Depreciation refers to the reduction in the value of an asset over a period of time.
Q: Consider a 5-year MACRS asset, which was purchased at $140,000. The asset was disposed of at end of…
A: The Modified Accelerated Cost Recovery System (MACRS) serves as a most appropriate method of…
Q: An equipment was purchased for P500,000.00 and the same has an economic life of 5 years, and with a…
A: Value 5,00,000 Years 5 Salvage value 1,00,000 Depreciation Double declining method…
Q: What is the value of an asset after 8 years of use if it depreciates from its original value of…
A: Straight Line Depreciation = (Cost of Assets - Salvage Value) / Useful Life Cost of assets…
4.It is know that the book value of an asset
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- 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.A fixed asset with a 5-year estimated useful life is sold during the second year. How would the use of the straight-line method of depreciation instead of the double-declining-balance method of depreciation affect the amount of gain or loss on the sale of the fixed asset?
- 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.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.
- Using the sum-of-the-years-digits method, how much depreciation expense should Vorst record in 2020 for Asset B? a. 6,000 b. 9,000 c. 11,000 d. 12,000Urquhart 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.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.
- 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?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.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.
