Construct a depreciation schedule using the straight line method for a new lorry that costs $80,000 and has a salvage value of $8,000 at the end of 6 years.
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- Chapter 16: Depreciation Methods Dude & Sons have just purchased a machine for $325,000 and an additional $25,000 charge for installation onto a truck for mobility. The expected life is 30 years with a salvage value of 10% of the purchase price. For classical straight-line depreciation determine the first cost, salvage value, annual depreciation amounts and book value after 20 years?Use the following data: Asset cost $120,000 Expected life 4 years Estimated salvage value $12,000 Using the sum-of-the-years-digit method, the amount of depreciation for the third year would be Question 12 options: $28,000. $21,600. $30,000. $48,600.Asset Cost $56,000 Salvage value 1,000 Life 10 years Depreciation method Straight Line What is the depreciation in year 3? What would the depreciation in year 4 be if at the beginning of the year we think that the total asset life will be only 8 years instead of 10 years?
- Economics Equipment having a first cost of $158,000, a life of 10 years, and a salvage value of $23,000. What is its book value after 6 years using the MACRS depreciation method? O $111,405.80 O $46,594.20 O $62,811.50 O $95,188.504 Construct the annual depreciation charge of an equipment purchased at a cost of P7,535,000 using double-dedining balance method if the estimated useful life is 10 years. determine also the estimated scrap value.An asset cost $200,000. It has a salvage value of $40,000. It has a 10 year life. What would accumulated depreciation be at the end of three years assuming straight line depreciation? Group of answer choices $60,000 $40,000 $48,000 $160,000
- Problem 1: The initial cost of a paint sand mill, including its installation is P 800,000. The depreciable life of this machine is 10 years with an estimated salvage value of P 50,000. Using DBM, 1. Compute the annual depreciation charge. 2. Compute the total depreciation after 6 years. 3. Compute the book value after 6 years.Purchase 250,000 Salvage 25,000 Time 3 years and one month By using straight-line find the Depreciation? The answer should be equal= 138,75012.2 Muddy Fields Earthmoving can purchase a bull- dozer for $30,000. After 7 years of use, the bull- dozer should have a salvage value of $5000. (1) Under MACRS, what depreciation is claimed in year 3? Under the straight-line (pre-1981) method, what depreciation is claimed in year 3? Under the SOYD (pre-1981) method, what depreciation is claimed in year 3?
- How much annual depreciation expense would be recognized for a truck that originally cost $30,000 and has an estimated useful life of 5 years with a $5,000 salvage value? a. $5,000 b. $10,000 c. $7,000 d. $3,333 e. $6,000An asset cost $200,000. It has a salvage value of $40,000. It has a 10 year life. What is its depreciation expense if the company uses straight-line depreciation? Group of answer choices $200,000 $160,000 $20,000 $16,000Question 12 Use the straight line method to find the annual depreciation for a car that costs $18,000, has an expected life of 4 years and has a salvage value of $2,000.