ABC Company purchased a tooling machine on January 3, 2000 for P500,000. The machine was being depreciated on the straight-line method over an estimated useful life of 10 years, with no salvage value. At the beginning of 2007, the company paid P125,000 to overhaul the machine. As a result of this improvement, the company estimated that the useful life of the machine would be extended an additional 5 years (15 years total). What should be the depreciation expense recorded for the machine in 2007?

Mom's Cookies, Inc., is considering the purchase of a new cookie oven. The original cost of the old oven was $47,000; it is now five years old, and it has a current market value of $21,000. The old oven is being depreciated over a 10-year life toward a zero estimated salvage value on a straight-line basis, resulting in a current book value of $23,500 and an annual depreciation expense of $4,700. The old oven can be used for six more years but has no market value after its depreciable life is over. Management is contemplating the purchase of a new oven whose cost is $27,000 and whose estimated salvage value is zero. Expected before-tax cash savings from the new oven are $3,200 a year over its life, you can use bonus depreciation on the oven, and the cost of capital is 10 percent. Assume a 21 percent tax rate. What will the cash flows for this project be? (Note that the $47,000 cost of the old oven is depreciated over ten years at $4,700 per year. The half-year convention is not used for…

On January 2, 2017, Greenwood Company purchased and placed in operation a machine estimated to have a 10-yearlife and no salvage value. The machine cost P600,000 and was depreciated on a straight-line basis. On December 27,2020, a P60,000 device that increased the machine's output by one fourth was added to the machine. The new devicemade no change in the machine's estimated life and salvage value. During the first week of January, 2024 the machinewas completely overhauled at a cost of P180,000. The overhaul added three additional years to the machine's estimatedlife but did not change its salvage value. Prepare entries in general form to record:a) the purchase of the machineb) the 2017 depreciationc) the addition of the new deviced) the 2021 depreciatione) overhauling of the machinef) the 2024 depreciation

Compute the annual depreciation that would have been charged from 2004 through 2021. Annual depreciation from 2004 through 2021 $ / yr.