FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- RRarrow_forwardD. Double Declining Method Problem: Determine the rate of depreciation, the total depreciation up to end of the 8th year, and the book value at the end of 8 years for an asset that costs P15,000 now and has an estimated scrap value of P2,000 at the end of 10 years by (a) declining balance method and (b) the double declining balance method. (Make a table in Microsoft Excel)arrow_forwardAnswer, box the final answer use Pesos sign symbolarrow_forward
- 5. A company buys an asset with a cost of $96,000. They decide on a 6-year useful life and a $6,000 salvage value. What is the MONTHLY depreciation using straight line depreciation?arrow_forwardxyz company has equipment that cost 100000. after 8 years it will have a salvage value of 18000. using the double declining balance method find the depreciation charge in the 4th yeararrow_forwardBook value Find the book value for the asset shown in the accompanying table, assuming that MACRS depreciation is being used Recovery period (years) 5 Elapsed time since purchase (years) 2 Asset A Installed cost $839,000 The remaining book value is $ (Round to the nearest dollar.) Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Recovery year 1 2 3 4 5 6 7 8 3 years 33% 45% 15% 7% 9 10 11 Totals Percentage by recovery year* 5 years 7 years 20% 14% 32% 19% 12% 12% 5% 25% 18% 12% 9% 8% 7% 6% 6% 6% 4% 100% 100% 100% 100% *These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%) depreciation using the half-year 10 years 10% 18%…arrow_forward
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