16. An asset originally cost $100,000, also incurred installation costs of $10,000 and has an estimated salvage value of $25,000. It is being depreciated under MACRS, using a 5-year normal recovery period. What is the depreciation expense in year 1? A. $15,000 B. $12,750 C. $11,250 D. $22,000
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16. An asset originally cost $100,000, also incurred installation costs of $10,000 and has an estimated salvage value of $25,000. It is being
A. $15,000
B. $12,750
C. $11,250
D. $22,000
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- 1.)Equipment with a cost of P450,000 has an estimated salvage value of P30,000 and an estimated life of 4 years or 10,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 2,700 hours? A. P112,500 B. P105,000 C. P113,400 D. P108,750 2. On June 30, 2016, a fire in Jeremy Company's plant caused the total loss of a production machine. The machine was being depreciated at P20,000 annually. And had a carrying amount of P160,000 on December 31, 2015. On the date of the fire, the fair value of the machine was P220,000 and Jeremy received insurance proceeds of P200,000 in October 2016. In its income statement for the year ended December 31, 2016, what amount should Jeremy recognize as a gain or loss on disposition? Answer:10. An asset which cost $10,000 when new is being depreciated under MACRS using a 5-year normal recovery period. What is the depreciation expense in year 3?A. $1,900B. $1,200C. $1,500D. $2,10013. An asset which cost $100,000 is being depreciated under MACRS using a 10-year normal recovery period. The depreciation expense in year 11 is A. $3,000.B. $4,000.C. $0.D. $6,000.
- 29. The first cost of a machine is P1,800,000 with a salvage value of P300,000 at the end of its life of 5 years. Determine the total depreciation after 3 years. Using Sum of Years Digit Method a. P1,150,000 c. P1,300,000 b. P1,200,000 d. P1,350,600Problem 1. a:Consider the following data on an asset: Cost of the asset, I Useful life, N Salvage value, S $130,000 5 years $5,000 Compute the annual depreciation allowance using the straight-line depreciation method.9.9 Consider the following data on an asset: Cost of the asset, / Useful life, N Salvage value, S $123,000 7 years $13,000 Compute the annual depreciation allowances and the resulting book values, initially using the DDB and then switching to SL.
- 1. An equipment costing P750,000 has a life expectancy of 6 years. Using the sum-of-year’s digit method of depreciation, what must be its salvage value such that its depreciation charge at the fifth year is P52,380.95? A. P400,000 B. P250,000 C. P300,000 D. P200,000PQ16.02 Equipment with a cost of $450,000 has an estimated salvage value of $30,000 and an estimated life of 4 years or 10,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 2,700 hours?d. The depreciation deduction for year 11 of an asset with a 20-year useful life is $3,600. If the salvage value of the asset was estimated to be zero and straight line depreciation was used to calculate the depreciation deduction for year 11, the initial cost of this asset is most closely equal to which of the following values? (a) $42,000 (b) $67,750 $72,500 (d) $80,000 e. Consider the following data extracted from an After Tax Cash Flow calculation. Before Tax Cash Flow = $22,500 Loan Principal Payment = $7,434 Loan Interest Payment = $892 MACRS Depreciation Deduction = $7,405 Taxes Due = $5,397 Which of the following is closest to the After Tax Cash Flow? (a) $1,372 $8,777 (c) $8,806 (d) $16,211
- A machine with a cost of $480,000 has an estimated salvage value of $30,000 and an estimated useful life of 5 years or 15,000 hours. It is to be depreciated using the units-of-activity method of depreciation. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours? Select one: a. $160,000 b. $130,000 c. $90,000 d. $150,000 Drago Company purchased equipment on January 1, 2016, at a total invoice cost of $1,200,000. The equipment has an estimated salvage value of $30,000 and an estimated useful life of 5 years. What is the amount of accumulated depreciation at December 31, 2017, if the straight-line method of depreciation is used? Select one: a. $234,000 b. $468,000 c. $240,000 d. $480,000 Sargent Corporation bought equipment on January 1, 2017. The equipment cost $360,000 and had an expected salvage value of $60,000. The life of the equipment was estimated to be 6 years. Assuming straight-line deprecation, the book value of…The depreciation deduction for year 11 of an asset with a 20-year useful life is $4,000. If the salvage value of the asset was estimated to be zero and straight-line depreciation was used to calculate the depreciation deduction for year 11, what was the initial cost of the asset? a. $42,105 b. $67,682 c. $72,682 d. $80,000.4. An asset that is book-depreciated over a 5-year period by the straight-linemethod has BV3 = ₱ 62,000 with a depreciation charge of ₱ 26,000 peryear. Determine (a) the first cost of the asset and (b) the assumed salvagevalue