Answered: A machine has a first cost of…

A machine has a first cost of P88,155.25 and has an expected salvage value after 10 years P10,772.58. Find the book value after 8 years using declining balance method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: A machine has a first cost of P97,198.62 and has an expected salvage value after 10 years…

A: Depreciation expenses: The depreciation method is the method that helps us to allocate how much of…

Q: An equipment cost P60,000 today and its salvage value is P20,000 after 6 years. Calculate its…

A: The asset is purchased by a firm so that it can be used in the operation of the business. Due to the…

Q: The initial cost of a machine is 30000 TL, its depreciation life is 7 years and its scrap value is…

A: Depreciation describes the decrease in the value of the asset on a systematic basis on yearly basis.…

Q: XYZ Company uses the high-low method to analyze mixed costs. During the year, the highest level of…

A: High-low method is used to differentiate the fixed and variable cost from a limited amount of data.

Q: An electronic balance costs BD9,000 and has an estimated salvage value of BD800 at the end of its 10…

A: Double Declining Balance Method Rate=Straight line Method Rate×2

Q: of equipm S = 120,00 ies is estin ve AW

A: Given first cost of $165,000, market (salvage) value described S = 120,000 – 23,000k, AOC = 60,000 +…

Q: The first cost of a certain machine After 8 years it will have a salvage value of P18,000.00.…

A: Depreciation is an accounting method of allocating the cost of tangible assest over useful its life…

Q: Using Declining Balance Method, a machine with an initial cost of $200,000 and a life of 10 years.

A: The value of the specific machinery or asset after its effective or expected life of usage is…

Q: A machine has a first cost of P50,000 with interest rate of 10% annually. Expected salvage value…

A: concept. The Sinking Fund Method:- In this method, sinking funds will accumulate for replacement…

Q: 2. It is rëquired to select one of the three machines. Which machine should be selected, based on…

A: Present worth analysis refers to the difference between the present value of the revenues and the…

Q: If machine has a first cost which is five times of its salvage value and the annual depreciation…

A: Calculation of first cost in pesos:: Given the depreciation expense charge is::P1452... Depreciation…

Q: AMP Corporation (calendar-year-end) has 2020 taxable income of $1,900,000 for purposes of computing…

A: A tax provision referred to as Section 179 allows a deduction for the whole cost of qualifying…

Q: A machine costing P1,500,000.00 has an estimated economic life of 7 years. If the salvage value is…

A: The depreciation on fixed assets can be computed using various methods as straight line method,…

Q: ing P 720,000 is estimated to have a book value of P 40, 545.73 when retired at the end of 10 years.…

A: Constant percentage of declining value is method of depreciation in which there is constant…

Q: 8. A machine has an initial cost of $ 50,000, annual operation and maintenance cost of $ 5,000 a…

A: Depreciation seems to be the process of reducing the value of physical assets such as machinery,…

Q: A machine has an initial cost of P74,777.226 and a salvage value of P8,991.127 after 7 years. What…

A: Initial cost = P 74,777.226 Salvage value = P 8991.127 Life = 7 Years Annual depreciation = (Initial…

Q: machine costs P 8,000 which last for 7 years with a salvage value at the end of its life of P 355.…

A: The solution to the given question is given below.

Q: Determine the book value of the machine on the 10th year given its useful life of 10 years. The…

A: Computation of Depreciation as per straight-line method: Depreciation per annum = (20,000 -…

Q: A machine has a first cost of Php80,000 and salvage value of Php10,000 for 10 years. Using straight…

A: Meaning of depreciation: Depreciation refers to a reduction in the value of the asset due to use.…

Q: A lathe machine costs ₱650,000 and the salvage value of ₱65,000 after 20 years. Find the annual…

A: Answer:- Depreciation :- The accounting technique of spreading out the cost of a tangible item over…

Q: A machine gives annual benefits of 1000$ and have no salvage value with annual maintenance of 750$,…

A: Present worth is the present value of future cashflows

Q: A machine has a first cost of P50,000 with interest rate of 10% annually. Expected salvage value…

A: Depreciation is the total loss in value of an asset over the life of the asset. The value of asset…

Q: ected salvage value of $4,500 at the end of the depreciable life. Find the yearly depreciation, Book…

A: Matheson equation refers to the method of computing the depreciation under which the annual expense…

Q: A machine has a first cost of P94,547.82 and has an expected salvage value after 10 years…

A: Depreciation is an expense which is charged on the non-current assets in order to record the regular…

Q: Please complete requirement 2 by using the adjusted trial balance

A: The transactions of business are to be entered in journals first which is followed by classifying in…

Q: A machine costs RO 40,000 with a salvage value of RO 20,000. The expected life of the machine is…

A: Depreciation is the decrease in the value of asset. Salvage Value is the estimated value of property…

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: COst scrap value of GH¢$5000. Construct the depreciation schedule using the sinking-fund method with…

A: Sinking Fund Method of Depreciation: In this method , actual decrease in the value of asset each…

Q: How much is it worth after 7 years using Double Declining Balance Method? FC = 3.2 M Salvage Value…

A: Solution Formula used Double declining balance rate =1/ useful life *2 Given First cost…

Q: An automated assembly robot that cost $400,000 has a depreciable life of five years with a $100,000…

A: The book value is the cost of the assets less the depreciation for the period. The depreciation is…

Q: A machine has a cost basis of 1000000 TL and a salvage value of 80000 TL. Depreciation period is 8…

A: Depreciation Expense is reduction in the value of assets due to its use, wear or tear.Salvage value…

Q: Cairney, Incorporated manufactures a specialized part used in internal combustion engines. The…

A: a. To determine the cost per unit that the cost system should report, we need to consider both fixed…

Q: Use CVP and compute the room sales necessary to achieve a net income of 156,000 for a single product…

A: Total fixed cost means the costs which are incurred by the business in fixed amount. These costs do…

Q: A machine costs P150000 The book value at the end of 2 years is estimated to be P870000. If the…

A: The depreciation rate % for each year is computed using the SYD technique in which the number of…

Q: A machine has a first cost of P60,000 with interest rate of 12% annually. Expected salvage value…

A: Using sinking fund method:- Annual depreciation= [(FC-SV)*i]/[(1+i)n -1] Book value = FC -…

Question

A machine has a first cost of P88,155.25 and has an expected salvage value after 10
years P10,772.58. Find the book value after 8 years using declining balance method.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Compute the EUAC for Pump A. Ideally this value was determined to make the decision of which pump to select. Pump A, with a useful life of 6 years: Initial cost = $3500 & Salvage value at end of life of $500 Enter the EUAC for Pump A.
A machine has a first cost of P78,862.18 and has an expected salvage value after 10 years P10,946.79. Find the book value after 7 years using declining balance method.
Please answer immediately. A certain equipment has a first cost of P 12,000 and a salvage value of P 500 at the end of x years. What is the value of x if the annual depreciation is P 1,567.6 using the Sinking Fund Method at 8%?
An electronic balance costs BD9,000 and has an estimated salvage value of BD800 at the end of its 10 years life. What would be the book value after three years using the DDB?
Description You are to create a year-by-year depreciation schedule for an asset that has a cost basis (B) of $950,000 and estimated salvage value (SV 10) of $80,000 after 10 years. For the straight-line and declining balance methods, use a depreciable life (N) of 10 years. For MACRS, use a recovery period (N) of 7-yrs. ΕΟΥ, Κ 0 1 2 3 st 4 5 6 7 8 'a 9 10 Straight-Line BVk $950,000 Declining Balance dk BVk $950,000 dk MACRS BVk 950,000
Par Inc. owns 70% of Sent Inc's voting shares. Sent purchased land for 560,000 and then sold it to Par on June 10, 2019, for $90,000. Which of the following statements are TRUE regarding the worksheet cosolidation entries needed on December 31. 2019 and 2020 to remove the effects of the Intercompany sale of land? OThe December 31. 2019, worksheet consolidation entry includes a debit to Gain on Sale of Land of $30,000. The December 31, 2019. worksheet consolidation entry includes a credit Land of $30,000. The December 31, 2020, worksheet consolidation entry includes a debit to Investment in Sent of $21.000. The December 31, 2020, worksheet consolidation entry includes a debit to Land of $9.000. OThe December 31, 2020, worksheet consolidation entry includes a credit to Gain on Sale of Land of $30,000.
Company A owns an equipmet that costs P510940 . After 8 years, it will have a salvage value of P23794 . Compute the book value at the end of 3 years using the double rate declining method Use 2 decimal values,
A machine has a first cost of P91,976.07 and has an expected salvage value after 10 years P10,603.69. Find the book value after 7 years using declining balance method.
22. A certain machine has book value of P120,000 after 5 years and P80,000 after 7 years. The book value is computed using Straight Line Method. Determine the initial cost of the equipment.
Alternative X has a first cost of 22000 an annual operating cost of 4100 , and a salvage value of 6825 after 27 year. Alternative Y has a first cost of 23000 an annual operating cost of 4200 , and a salvage value of 16560 after 27 year. If MARR of 27% per year, approximately what is the PW of each alternative?
8. A machine cost ₱11,025 has a life of 8 years and has a salvage value of ₱525 at the end of 8 years. Determine its book value at the end of 5 years using the sum of Years Digit Method. Solve and show the solution.
From the given values below, which machine should be selected using (a) Present worth Method and (b) Future worth Method if interest rate is 10% per year? Machine Initial Cost (Php) Annual Operating Cost A В 146,000 15,000 220,000 10,000 75,000 25,000 Annual Revenue 80,000 10,000 Salvage Value Useful Life (years) 6