An asset was purchased for $101,000 on January 1, Year 1 and originally estimated to have a useful life of 8 years with a residual value of $8,000. At the beginning of the third year, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $2,400. Calculate the third-year depreciation expense using the revised amounts and straight-line method. a.$17,837.50 b.$18,837.50 c.$19,337.50 d.$19,837.50

Q: omputer equipment was acquired at the beginning of the year at a cost of $63,7 e of 6 years.…

A: Answer :Cost of computer = $63,703 Residual value = $2,416 life = 6 years Depreciation per year…

Q: A building acquired at the beginning of the year at a cost of $1,630,000 has an estimate residual…

A: a) Computation of  Depreciable cost is as follows:=Cost -Residual value=$1630000-$340000=$1290000

Q: An asset is purchased for $200,000. The salvage value in 20 years is $75,000. What is the…

A: Cost of non-current assets is amortized throughout its useful life and is recorded as depreciation…

Q: 7. Ray acquired a property on 1 January x2 at a cost of RM960,000. Expected useful life is 24 years.…

A: Answer-    W. N 1 Depreciation  1.1.X2 960,000/24 = RM40,000 p.a.             31.12.x3…

Q: A building acquired at the beginning of the year at a cost of $1,375,000 has an estimated residual…

A: Depreciation is an method where the firm's assets to be recorded with present value by deducting an…

Q: Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $155,500 has an…

A: For the purpose of keeping track of commercial transactions, the business entities document them in…

Q: a.  What was the annual amount of depreciation for Years 1–3 using the straight-line method of…

A: Depreciation:   Depreciation refers to the reduction in the monetary value of a fixed asset due to…

Q: An asset has a cost of $60.000 with a residual value of $12,000. It has a life of 5 years and was…

A: As per double declining rate, the depreciation is calculated as follows: Double-declining…

Q: A plant Asset acquired on January 2 at a cost of 275,000 has an estimated useful life of 10 years.…

A: SOLUTION- A                                                 STRAIGHT LINE METHOD   DEPRECIATION =…

Q: A building acquired at the beginning of the year at a cost of $76,800 has an estimated residual…

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

Q: A property was purchased on 1 January 20X0 for $2m (estimated depreciable amount $1m – useful…

A: There are two methods of accounting for PPE in the books provided by IAS 16 i.e. Cost basis and the…

Q: Lacey Company purchased a depreciable asset for $440,000. The estimated salvage value is $20,000,…

A: Depreciation is the decrease in value of assets due to its obsolete condition ,wear and tear…

Q: The depreciation allowance for a $100,000 MACRS-GDS asset was $8,550 after its 3rd year. What was…

A: The Modified Accelerated Cost Recovery System-General Depreciation System (MACRS)GDS) is used to…

Q: Equipment acquired on January 3,20Y1, at a cost of $412,500, has an estimated useful life of 20…

A: Step 1:The computation of the amount of depreciation for the years 20Y1, 20Y2 and 20Y3 respectively…

Q: A building acquired at the beginning of the year at a cost of $3,585,000 has an estimated residual…

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

Q: Equipment acquired at the beginning of the year at a cost of $470,000 has an estimated residual…

A: Depreciable cost = cost of asset - residual value

Q: Computer equipment was acquired at the beginning of the year at a cost of $60,010 that has an…

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

Q: Disposal of fixed asset Equipment acquired on January 6 at a cost of $317,400 has an estimated…

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

Q: An asset was purchased and installed for $277,685. The asset is classified as MACRS 7-year property.…

A: Depreciation: Generally speaking, the word "depreciation" refers to an accounting process that is…

Q: Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $331,200 has an estimated…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. Fixed assets…

Q: Beckman enterprises purchase a depreciable asset on Oct1, year1 at a cost of 132,000. the asset is…

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

Q: Year Depreciation Expense Year 1 Year 2 Year 3 b. What was the book value of the equipment on…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

Q: Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $114,140 has an…

A: Straight-line method:- This method is used in amortization of the value of an asset into its number…

Q: 1.An asset is purchased on January 1 at a cost of $25,000. It is expected to be used for four years…

A: Given that, Cost = $ 25000 Salvage value  = $1000 useful life = 4 years

Q: An asset was purchased for $58,000 and originally estimated to have a useful life of 10 years with a…

A: DEPRECIATION   Depreciation is the decrease in the value of assets. Depreciation is the Gradually…

Q: Equipment acquired on January 9, 20Y3, at a cost of $615,000, has an estimated useful life of 17…

A: Straight Line Depreciation Expense = (Cost - Residual Value)/ Useful Life Book Value = Cost -…

Q: A building acquired at the beginning of the year at a cost of $1,630,000 has an estimated residual…

A: The depreciable cost = Cost - Residual value The Straight-line Rate = ( 1/ Life in Years) Annual…

Q: The cost of an asset is $1,050,000, and its residual value is $280,000. Estimated useful life of the…

A: Depreciation means the amount expense out of cost of assets due to normal usage of assets , normal…

Q: A 7 year property class was purchased for $115,000. The owner took depreciation charges using MACRS…

A: It is the financial gain realized when the depreciable property was sold, which should be reported…

Q: Equipment acquired on January 2, Year 1, at a cost of $525,000 has an estimated useful life of eight…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: Beck man Enterprise purchased a depreciable asset on October 1, Year 1 at the cost of $152,000. The…

A: Depreciation expense refers to the fall in the value of the asset due to passage of time, wear and…

Q: Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $145,100, has an…

A: Depreciation Expenses - Depreciation Expense is an expense incurred on the use, passage of time,…

Q: An asset, with a useful life of 10 years, wasacquired at the beginning of year 1 at a cost of $60…

A: The objective of the question is to calculate the revaluation amount of an asset that was initially…

Q: An asset has a depreciable base of $80,000 and an estimated useful life of 4 years. In the first…

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

Q: A bulding acquired at the beginring of the year at a cost of $2,200,000 has an estimated residual…

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

Q: Equipment acquired at a cost of $104,000 has an estimated residual value of $6,000 and an estimated…

A: Depreciation is an expense charged against the value of long term assets. It can be calculated by…

Q: Splish Brothers Inc. purchased a piece of equipment for $74,400. It estimated a 8-year life and a…

A: Depreciation as per straight-line method = (cost - salvage value)/Useful life

Q: A plant asset was purchased on January 1 for $59000 with an estimated salvage value of $9000 at the…

A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…

Q: The depreciation deduction for year 11 of an asset with a 20-year useful life is $4,000. If the…

A: The Numerical has Covered the concept of Straight Line Method of Depreciation. As the name suggests,…

Q: The following information is available on a depreciable asset: Purchase date January 1, Year 1…

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

Q: Consider a five-year MACRS asset that was purchased for $76,000. Computethe gain or loss amounts if…

A: Computation:

Q: A plant asset was purchased on January 1 for $120000 with an estimated salvage value of $10000 at…

A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…

Q: Disposal of fixed asset Equipment acquired on January 6 at a cost of $386,400 has an estimated…

A: Depreciation  Expenses is an expense incurred on the fixed assets of the company. These are recorded…

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.