:alli2 bris spbelwon 10Y 129) Your client, Barwa Taxis, has purchased a motor vehicle for $300,000 before the end of the year 2012 by 5 months. The cost of freight is $44,000, and the Qatari import tax applied is 2%. They estimate that its useful life is 5 years and after that, the salvage value will be $50,000. Design the depreciation schedule for this asset using the straight-line depreciation method. ear Activity No. 3 cded in depregationen Opening book value chines. costs expenses xpenses are include deprecia Annual Depreciation amount Closing book value Accumulated depreciation amount u mota A uded depreciation

:alli2 bris spbelwon 10Y 129) Your client, Barwa Taxis, has purchased a motor vehicle for $300,000 before the end of the year 2012 by 5 months. The cost of freight is $44,000, and the Qatari import tax applied is 2%. They estimate that its useful life is 5 years and after that, the salvage value will be $50,000. Design the depreciation schedule for this asset using the straight-line depreciation method. ear Activity No. 3 cded in depregationen Opening book value chines. costs expenses xpenses are include deprecia Annual Depreciation amount Closing book value Accumulated depreciation amount u mota A uded depreciation

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
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.
Plz use excel and show formula !!!!!!! Benson Enterprises is deciding when to replace its old machine. The machine’s current salvagevalue is $1.2 million. Its current book value is $1 million. If not sold, the old machine will requiremaintenance costs of $420,000 at the end of the year for the next five years. Depreciation on theold machine is $200,000 per year. At the end of five years, it will have a salvage value of $220,000.A replacement machine costs $3.5 million now and requires maintenance costs of $160,000 at theend of each year during its economic life of five years. At the end of five years, the new machinewill have a salvage value of $540,000. It will be fully depreciated using the three-year MACRSschedule. In five years a replacement machine will cost $4,000,000. Pilot will need to purchasethis machine regardless of what choice it makes today. The corporate tax is 35 percent and theappropriate discount rate is 10 percent. The company is assumed to earn sufficient revenues…
Please help check my answer on this question: Vermont Industries, a clothing mail-order retailer, purchased a new industrial sewing machine for $156,000. This machine is expected to operate for 5 years after which it will be sold for salvage value estimated to be $9,000. What is the yearly depreciation expense under the straight-line method? X = ($156,000.00 -$9,000.000) / 5 X = $29,400.00
XYZ bought an asset that cost $200,000 at the beginning of the year. It has a salvage value of $30,000. The useful life of the asset is 10 years. If the company uses straight-line depreciation, what would depreciation be for the first year of the asset's life? Group of answer choices $30,000 $200,000 $17,000 $20,000
5. The price of a system of jockey pumps is P5,500,000. PLM decided to purchase this system and spent P215,500 for shipping and installation. The equipment will last for 10 years with a salvage value of 3% of its total cost. Determine the following: a. Yearly charge of depreciation using SL method. b.Depreciation charge on the 6thyear, and book value at the end of the 8thyear using SYD method.
2. Keira's Kar Company purchases a Machine and incurs the following costs: $250,000 $5,000 $1,500 $2,000 $500 Purchase Price Sales Tax Installation Cost Electricity Costs for the Year Deliver Costs Required: Calculate the Total Cost of the Machine and RECORD the purchase for CASH in the Journal. b. Keira estimates the MACHINE will have a $10,000 Salvage Value and a 5 Year useful life. Calculate the annual DEPRECIATION EXPENSE and RECORD it in the Journal. d. c. After Year 1... What is the Book Value or Carrying Value of the Machine? Assume that after 5 years, and the Machine is FULLY Depreciated (Accumulated Depreciation Balance = $257,000), Keira sells the Machine for $8,000 Cash. Calculate the Gain or Loss on Sale......and Record the Sale of the Machine in the Journal.
The price of a system of jockey pumps is P6,000,000. PLM decided to purchase this system and spent P215,500 for shipping and installation. The equipment will last for 10 years with a salvage value of 3% of its total cost. Determine the following: a. Yearly charge of depreciation using SL method. b. Respective depreciation charges on the 6th year and 8th year, and book value at the end of 8th year using SYD method
11. Zach's Corporation purchased a Jacquard machine for P6M, freight and installation charges amounted to 3% of the purchase price. If the machine will be depreciated over a period of 10 years with a salvage value of 6%, determine the depreciation cost during the 5th year using the SLM method. 12. An electric sewing machine costs P10,000 with a salvage value of P500 at the end of 10 years. Calculate the annual depreciation cost by the sinking fund method at 5% interest. 13. CMM Company was constructed at a first cost of PSM and with estimated salvage value of X at the end of 25 years. Find the value of X using sinking fund if the book value amounted to P5,480,093.88 at the end of 15 years with an interest rate of 10% annually. 14. An asset for drilling was purchased and place in service by a petroleum production company. Its initial investment is P50,000 and it has an estimated salvage value of P13,000 at the end of an estimated useful life of 10 years. Compute the book value at the…
PLEASE SOLVE THIS TWO PROBLEMS ASAP. THANK YOU! A. A machine costs P388868 with a salvage value of P18029 is expected to last for 28537 hours in 5 years. In the first year of service it was used for 8077 hours. Compute the book value at the end of the first year. B.The cost of a certain asset is P486042 , its life is 5 years and scrap value is P9050 . Find the cost of depreciation after the first year using a constant percentage method.
A digital display in Carrefour costs 3400 RO, has an estimated life of 10 years, and a salvage value of 800 RO. Find the book value at the end of 4 years, assuming straight line depreciation. Select one: a. 2360 RO b. 2100 RO c. 2880 RO d. 2620 RO
رA machine costs RO 40,000 with a salvage value of RO 20,000. The expected life of the machine is 38000 hours in six years. In the first year, the machine is used for 4000 hours. In the second year, 6000 hours and 8000 hours on the third year. What is the depreciation at the end of the second year by using units of production method? a. RO 5120 b. RO 3120 c. RO 2080 d. RO 4160