Q: An equipment costs P7000 and has a life of 8 years and salvage value of x after 8 years. If the book…
A: Depreciation expense (sum-of-the-years' digits method ) = (Cost of the assets - Salvage…
Q: A machine costs P1,800,000. It has a salvage value of P300,000 at the end of 5 years. If money is…
A: Solution: Cost of machine = P1,800,000 Depreciation rate - SLM = 1/5 = 20% Depreciation rate - DDB…
Q: A piece of equipment has a first cost of P500,000 and the cost of installation is P30,000. If the…
A: Depreciation (Straight Line Method) = (Cost-Salvage Value) / Useful life Depreciation (Sinking Fund…
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: It is the reduction in the value of the asset over the period. This includes normal…
Q: The price of a system of jockey pumps is P5,500,000. PLM decided to purchase this system and spent…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: The equipment in a power station costs IQD 30,000,000 and has a salvage value of IQD 1,200,000 at…
A: The depreciation is said to be decrease in value of an asset with the usage and passage of time.
Q: An old machine may be repaired at a cost of P 9,000 or it may be replaced by a modern machine of the…
A: The repair cost of the old Machine = P9,000 Salvage Value of Old Machine (Present) = P13,000 Salvage…
Q: A mixer was purchased for $33,000 that has an estimated salvage value of $5000 and an expected life…
A: It is given that Initial investment P = $ 33000 Salvage value S = $5000 Time n- 3 yrs Interest i =…
Q: A unit of welding machine costs Php45,000 with an estimated life of 5 years. Its salvage value is…
A: Depreciation under Sinking Fund Method Annual depreciation (A) = (Cost -Salvage Value) ×(i)(1+i)n-1
Q: The first cost of a machine is Php 1,800,000 with a salvage value of Php 400,000 at the end of its…
A: Depreciation = C × (S/C)m/n C = original cost S = scrape value n = life of property in years m =…
Q: The cost of equipment is PHP 50857 and the cost of installation is PHP 35878. If the salvage value…
A: Sinking fund method of depreciation In case of sinking fund method of depreciation, a fixed…
Q: A tool is purehased for $500,000. The expected life is 25 years. The salvage value is $100,000. what…
A: Depreciation represents the reduction in the value of the asset over a useful life of the asset. It…
Q: An asset is purchased is ten times its salvage value. Its estimated life is 10 years, after which it…
A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…
Q: A company owns earth moving equipment that cost P100,000. After 8 years it will have estimated…
A: Depreciation: It is the allocation of cost of a tangible or physical asset over its useful life It…
Q: An equipment has a first cost of Php20,000 and has a salvage value of Php2,000 after 10 years. What…
A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…
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: 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: The original cost for a distillation tower is $ 24,000 and the lifetime of the tower is estimated at…
A: CALCULATION: With formula:
Q: A property is purchased at 1M and is expected to last 10 years with a salvage value of P100,000.…
A: Initial Cost = P 1,000,000 Salvage value = P100,000. Time Period = 10 Years
Q: A machine costs Php 300,000 with a salvage value of Php 50,000 at the end of its life of 10 years.…
A: Machine cost (C) = Php 300000 Salvage value (S) = Php 50000 n = 10 years r = 6%
Q: An asset is purchased for Php50,000. The salvage value in 25 years is Php100,00. What are the…
A: Purchase price = Php 50,000 Salvage value = Php 10,000 Life = 25 Years
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: A certain machine has a first cost of 30,000; annual costs of 6,000; a salvage value of 4,000 and a…
A: Introduction: Depreciation is the process of allocating the asset's value over its expected or…
Q: An equipment has an initial cost of 20,000 and a salvage value of 5,000 after 12 years. Find the…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
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: The annual depreciation of Php20,000 has been reserved for a machine using straight line for 8…
A: Machine cost = Php200,000 Annual depreciation = Php20,000 Life of machine = 8 years
Q: The initial cost of a piece of construction equipment is P30,000,000 having a useful life of 10…
A: Sinking Fund Method: It is possible to depreciate an asset while simultaneously earning enough money…
Q: The new delivery truck is worth a total of Php 7.4M, with a residual value after 8 years is Php…
A: In a diminishing balance method of depreciation, higher depreciation is charged in the initial years…
Q: An engineer bought an equipment for P500,000. Other expenses including installations amounted to…
A: Straight line method: Straight line method is the depreciation method under which the fixed asset is…
Q: An asset costing P50,000 has a life expectancy of 6 years and an estimated salvage value of P8000.…
A: Depreciation of asset occurs due to the passing of time and usage of the asset. When a fixed rate of…
Q: Bulldozer cost P12 Million and the cost of installation labor, taxes and miscellaneous expenses is…
A: P 1 Million = P 1000000 P 12 Million = P 12000000 The Cost Of Bulldozer = P 12000000 + P500000 = P…
Q: A Machine costs ₱80,000 and an estimated life of 10 years with a salvage value of ₱5,000. What is…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: A cement mixer costs P50,000 with an estimated life of 6 years. Its salvage value is P2,500. Find…
A: Here, Cost of Cement Mixer (FC) is P50,000 Salvage Value (SV) is P2,500 Estimated Life is 6 years…
Q: An asset with a first cost of $20,000 has an annual operating cost of $12,000 and a $4000 salvage…
A: Annuity refers to series of annual payment which are paid or received at start or end of specific…
Q: An equipment in a power station costs Ksh.1,560,000 and has a salvage value of Ksh.60,000 at the end…
A: Given information is: An equipment in a power station costs Ksh.1,560,000 and has a salvage value of…
Q: A building which was constructed for Php 1,000,000 has an estimated life of 15 years and a salvage…
A: Depreciation is a sort of outlay which has to be reported by the entity for recording the regular…
Q: The machine cost 20,000 pesos with a useful life of 10 years. If the book value at the end of 6th…
A: Depreciation is the reduction in value of tangible fixed assets in a financial period due to wear…
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: The equipment in a power station costs 850000 S and has a salvage value of Q5 7000 $ at the end of…
A: Depreciation is the reduction in the value of fixed assets due to normal wear and tear, passage of…
Q: The cost of a Range Rover is 50,000 RO with an estimated life of 8 years and the salvage value is…
A: The depreciation expense is charged on fixed assets as reduced value with the passage of time.
Q: The first cost of a machine is P1,800,000 with a salvage value of P300,000 at the end of its life of…
A: Rate of depreciation under declining balance method = 1useful life ×100 = 15×100 = 20% Sum of useful…
Q: An engineer bought an equipment for P 800,000. Other expenses, including installation, amounted to P…
A: depreciation is the decrease in value of the asset over its life dues to constant usage and wear and…
Q: Show your solution. a lathe machine cost P180,000 and has a salvage value of 15,000 at the end of…
A: The Sinking Fund Method of depreciation in which funds will be accumulated for replacement purposes.…
Q: Using a Sum of the Years'-Digits Depreciation, find the annual depreciation of a lathe machine that…
A: Cost of Asset : PHP 120,000 Salvage Value : PHP 15,000 Depreciable Base = Cost of Asset – Salvage…
Q: A machine costing RM84,000 has a life expectancy of six years and a salvage value of RM42,000.…
A: Depreciation refers to the fall in the book value of an asset each year. Depreciable amount is…
Q: A copying machine costs P 40,000, has a life of 4 years with a salvage value of P 5,000. The…
A: Total number of copies in all 4 years = Sum of copies in all years = 1800 + 2200 + 3000 + 4000…
Q: A solar panel unit has been purchased by a company for electricity back up. The solar unit costs…
A: Depreciation expense refers to the fall in the value of the asset due to passage of time, wear and…
Q: A machine has a first cost of PhP 800,000 and a salvage value of PhP 50,000 at the end of its life…
A: Return means earn additional on invested amount over the period. It shows excess cash inflow over…
Q: The first cost of a certain machine is P20,000 with a salvage value of P1,000 at the end of its…
A:
Q: A pump cost $1000 and has a salvage value of $100 after a life of 5 years. Using the straight-line…
A: Depreciation decreases the value of assets every year.
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.
A machine costs Php 800,000 with a salvage value of Php 100,000 at the end of its life of 10 years. If money is worth 4.5% annually, use Sinking Fund Method and determine the
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- A machine costs $300,000 with a salvage value of P50,000 at the end of its life of 10 years. If money is worth 6% annually, use Sinking Fund Method and tabulate the annual depreciation and book value.The machine cost 20,000 pesos with a useful life of 10 years. If the book value at the end of 6th year is 9,280 pesos and worth of money is 3% annually. Determine the salvage valye by sinking fund method of depreciation.A contractor can buy dump trucks for ₱ 800,000 each or rent them for ₱ 1,200 per truck per day. The truck has a salvage value of ₱ 100,000 at the end of its useful life of 5 years. The annual cost of maintenance is ₱ 20,000. Using annual cost method and 14% interest rate, determine the number of days per year that a truck must be used to warrant its purchased. Use sinking fund method of depreciation.
- A bulldozer was bought for ₱ 0.50M and have an estimated useful life of 10 years after which itwill have a scrap value of ₱0.05M. Repair and maintenance is placed at ₱ 35T annually, while cost for fuel,oil, lubricant and operator plus helper will be ₱ 12T monthly. Determine the following: What is the annual cost using the sinking fund method for computing depreciation if money is worth 10%effective?An equipment cost P60,000 today and its salvage value is P20,000 after 6 years. Calculate its total depreciation at year 4 with 3% interest rate. Use Sinking Fund MethodA machine has a first cost of P50,000 with interest rate of 10% annually. Expected salvage value after 10 years is P5,000. Find the total depreciation after 9 years using sinking fund method.
- A machine has a first cost of P400,000 and a salvage value of P46,000 17 years from now. If the interest is 10%. Find the annual depreciation(P) using sinking fund method of depreciation.An equipment cost P60,000 today and its salvage value is P20,000 after 6 years. Calculate its depreciation at year 2 with 3.45% interest rate.Use Sinking Fund MethodThe initial cost of a piece of construction equipment is P30,000,000 having a useful life of 10 years. The estimated salvage value of the equipment at the end of the useful life is P450,000. Determine accumulated depreciation at the end of 5th year using Sinking fund method, if interest rate is 8.2 % per year?
- A machine costs P1,800,000. It has a salvage value of P300,000 at the end of 5 years. If money is worth 6% annually, determine the starting depreciation charge using double-declining balance method.A machine costs Php 300,000 with a salvage value of Php 50,000 at the end of its life of 1O years. If money is worth 6% annually, use Sinking Fund Method and determine the total depreciation at the end of 6th year. A. Php 113,801.94 B. Php 132,300.79 C. Php 133,756.36 D. Php 123,405.94An equipment costs Php 10,000 with a salvage value of Php 500 at the end of 10 years. Calculate the total depreciation charge and book value at the end of 7 years using: