A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours. What is the amount of depreciation for the second full year, using the double-declining-balance method?

A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours. What is the amount of depreciation for the second full year, using the double-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 costing RM100,000 depreciates RM10,000 for the first year RM9,000 for the second year,…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: A machine having a first cost P60,000 will be retired at the end of 8 years. Depreciation cost is…

A: Depreciation: It is the accounting method by which cost of a tangible or physical asset is…

Q: Given the following cost information about a fixed asset, calculate depreciation expense for its…

A: Depreciation Expense is an expense charged to the fixed assets of the company. Depreciation is…

Q: A machine having a first cost of P 60,000.00 will be retired at the end of 8 years. Depreciation…

A: Depreciation is a method of decreasing the value of the depreciable assets. It can be calculated on…

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: total cost of depreciation up to the time

A: In declining balance method of calculating depreciation, depreciation is computed each year by…

Q: Concord Corporation constructed a building at a cost of $13650000. Weighted-average accumulated…

A: depreciation expense under SLM method = (Cost incurred +avoidable interest cost - salvage value) /…

Q: A new CNC machine has an installed with a cost basis of $35,000 and an estimated service life of…

A: Given: Cost of asset = $35,000 Life = 7 years

Q: A grader has an initial cost of $220,000 and an estimated useful life of 10 years. The salvage value…

A: Answer:- Double declining depreciation method:- When opposed to the straight line depreciation,…

Q: A new barcode reading device has an inslated cost basis of $21,760 and an estimated service ide of…

A: Depreciation is a way to allocate the cost of an asset over the total useful life of an asset. Thus,…

Q: value of P30, 000 at the end of the per iod. Compute the depreciati nd its book value after 10 years…

A: We can also find the declining depreciation by declining rate which is founded in below table and it…

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: 3. A certain office equipment has a first cost of P20,000 and a salvage value of P1,000 at the end…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

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 building with a cost of $112,500 has an estimated residual value of $22,500, has an estimated…

A: Under straight line method of depreciation, depreciation remains same every year. Straight line…

Q: A machine costing P45,000 is estimated to have a salvage value of P4,350 when retired at the end of…

A: Depreciation rate = 1- ( Salvage Value/Cost)1/n Where n is the number of years of useful life.

Q: 3. An equipment with a price of P650,000, has an economic life of 5 years and a salvage value of P…

A: Solution.. Cost = P650,000 Life = 5 years Rate of depreciation = 200% ÷ life = 200% ÷ 5 =…

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: A machine with a cost of $62,300 has an estimated residual value of $4,031 and an estimated life of…

A: Depreciation means the expenses written off from value of fixed assets due to natural wear and tear…

Q: On January 1, 2022. Novak Company purchased the following two machines for use in its production…

A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…

Q: A machine with a cost of $63,210.00 has an estimated residual value of $4,731.00 and an estimated…

A: Unit of Output method Unit of production depreciation, also called as activity method, calculates…

Q: 8) A machine costing P2,500 has an estimated useful life of 4 years with a scrap value of P500.…

A: Depreciation refers to the reduction in the value of asset due to its normal use and tear and wear.…

Q: A dump truck was bought for P750,000 three years ago. It will have a salvage value of P100,000 two…

A: The question is based on the concept of Depreciation Accounting.

Q: A machine costing P 733,615 is estimated to have a life of 10 years. If the annual rate of…

A: Under Constant percentage of declining balance method, to calculate depreciation for current year,…

Q: A machine that cost $400,000 has an estimated residual value of $40,000 and an estimated usefullife…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/4 years) x 2 = 50%

Q: A new barcode reading device has an installed cost basis of $21,490 and an estimated service life of…

A: The calculation of depreciation expense for the year eight, book value at the end of year seven and…

Q: An equipment costing 250,000 has an estimated life of 15 years with a book value of 30,000 at the…

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: A machine with a cost of $50,000 has an estimated residual value of $3,743 and an estimated life of…

A: Depreciation records the usage of a fixed asset over a period of time and allocates its cost to the…

Q: 3. Given the following cost information about a fixed asset, calculate depreciation expense for its…

A: a. Cost of the truck = $75,000 Salvage value = $3,000Useful life = 5 yearsThe depreciation expense…

Q: A machine with a cost of $70,887.00 has an estimated residual value of $4,907.00 and an estimated…

A: Depreciation represents the reduction in the value of the asset over a useful life of the asset. It…

Q: The original cost of a certain machine is P150,000.00, has a life of 8 years with a salvage value of…

A: Declining Balance Method of Depreciation :— Under this method, depreciation expense is calculated by…

Q: Equipment with a cost of $950000 has an estimated salvage value of $30000 and an estimated life of 4…

A: Depreciation: It refers to a gradual decrease in the fixed asset’s value because of obsolescence,…

Q: A new barcode reading device has an installed cost basis of $23,790 and an estimated service life of…

A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…

Q: depreciation in year 3

A: units of production depreciation method : it is the one of the method for calculation of…

Q: A machine having a first cost of P60,000 will be retired at the end of 8 years. Depreciation cost is…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: A machine with a cost of $64,800 has an estimated residual value of $4,863 and an estimated life of…

A: Depreciation aids in balancing an asset's cost with its revenue, which is why it is crucial for…

Question

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

AI-Generated Solution

AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.

Unlock instant AI solutions

Tap the button
to generate a solution

Click the button to generate
a solution

SEE SOLUTION

Similar questions

An asset costs $260,000 and is classified as a ten-year asset. What is the annual depreciation expense for the first three years under the straight-line and the modified accelerated cost recovery systems of depreciation? Be sure to apply the half-year convention to straight-line depreciation. Use Exhibit 9.4 to answer the question. Round your answers to the nearest dollar. Straight-line depreciation: Year 1 2 3 Accelerated cost recovery system of depreciation: Year 1 2 Depreciation expense $ 3 Depreciation expense $ AA
asset costing P50,000 has a life expectancy of 6 years and an estimated salvage value of P8000. Calculate the depreciation charge at the of the fourth year period using Declining Balance Method.
A machine with a purchase value of (150,000) dollars and the useful life of the machine is 7 years. Calculate the annual depreciation of the machine | And the book value for each year by the method of the sum of the years of the productive life, if you know that the book value of the machine at the end of its life (the ruins) is 80,000 dollars.
4. A machine costs 2,500,000. At the end of its economic life of five years, its salvage value is Php 800,000. Using the Sum of the Years Digit Method of Depreciation, what will be its book value for the first year?Prepare a depreciation Schedule.
Explain why fixed assets are depreciated. A patent is purchased at a cost of $100,000, and the buyer expects the useful life to be 20 years. What is the adjusting entry needed at year-end? What is the reasoning of using the declining balance method? A delivery truck that costs $40,000 has a residual value of $8,000 and a useful life of 160,000 miles and the truck was driven 20,000 miles that year. Calculate the first year’s depreciation. What is the book value of the truck at the end of the first year?
A delivery van costing $35,000 is expected to have a $2,000 salvage value at the end of its useful life of five years. Assume that the truck was purchased on January 1. Compute the annual depreciation expense under the straight‑line depreciation method. (Round your answer to the nearest whole number.)
A construction equipment costs 700,000 pesos and will have a salvage value of 30% of its original cost when retired at the end of 4 years. What is the first year’s depreciation cost? Use sum of years digit method.
An equipment costing 50,000 has a book value of 4,000 after 8yrs. The depreciation is computed by using the constant percentage of the declining book value. Compute for the salvage value after 12 years.
A machine with a cost of $55,000 has an estimated residual value of $3,852 and an estimated life of 5 years or 18,749 hours. What is the amount of depreciation for the second full year, using the double-declining-balance method? Oa. $22,000 Ob. $13,200 Oc. $11,000 Od. $20,459
Your company is considering the purchase of a machine at a cost of P1,261,652, with an estimated salvage value of P207,760 and a projected useful life of 16 years. Determine the depreciation on the 5th year using the sum of years digits (SOYD) depreciation method. Write your final answer in two decimal places.
The initial cost of the machine including its installation is 930,000. The expected life of the machine is 13 years for depreciation. The estimated salvage value of the equipment is 66,000 and the cost of dismantling is 22,000. Using the Declining Balance Method, what is the annual depreciation charge and what is the book value of the machine at the end of the eight year.
A machine with a cost of $65,400 has an estimated residual value of $4,262 and an estimated life of 5 years or 19,244 hours. What is the amount of depreciation for the second full year, using the double-declining-balance method? a.$13,080 b.$26,160 c.$15,696 d.$24,455