FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Cost of equipment $64,000, salvage value $10,000, current year deprciation $5000, Total accumulatated
What is the remainder of useful life?
a) 7.8 b) 12.8 c) 4.6 or d) 10.8
not sure if I rewrote the question and infor correctly..
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- An asset was purchased three years ago at a cost of P5,000. It was estimated to have a useful life of 8 years with a salvage value of P250 at the end of the time. It is now of no future use and can be sold for only P720. a. Straight-line method b. Sum-of-the-Years'-Digits (SYD) Methodarrow_forwardBased on the information below, what amount should be recorded for depreciation at the end of Year 2 assuming Straight-Line Depreciation is used? Cost of Equipment $100,000 Salvage Value $5,000 Useful Life 20 years $9,750 $5,000 $4,750 $250arrow_forward17 Equipment that cost 412000 and on which 191000 of accumulated depreciation has been recorded was disposed of for 181000 cash. The entry to record this event would include a ?arrow_forward
- I need to solve this depreciation problem but not really sure how.arrow_forward4.It is know that the book value of an asset depreciated through declining balance depreciation is $3000 in year 3.Purchase price of the asset was $3800.What is the asset salvage value at the end of its useful life,which is 10 years?arrow_forwardEquipment with a cost of $88,200, an estimated residual value of $4,200, and an estimated life of 14 years was depreciated by the straight-line method for 4 years. Due to obsolescence, it was determined that the remaining useful life should be shortened by 5 years and the residual value changed to zero. The depreciation expense for the current and future years is a.$12,840 b.$24,000 c.$7,133 d.$4,586arrow_forward
- d. The depreciation deduction for year 11 of an asset with a 20-year useful life is $3,600. If the salvage value of the asset was estimated to be zero and straight line depreciation was used to calculate the depreciation deduction for year 11, the initial cost of this asset is most closely equal to which of the following values? (a) $42,000 (b) $67,750 $72,500 (d) $80,000 e. Consider the following data extracted from an After Tax Cash Flow calculation. Before Tax Cash Flow = $22,500 Loan Principal Payment = $7,434 Loan Interest Payment = $892 MACRS Depreciation Deduction = $7,405 Taxes Due = $5,397 Which of the following is closest to the After Tax Cash Flow? (a) $1,372 $8,777 (c) $8,806 (d) $16,211arrow_forwardA9arrow_forwardN6 A new machine tool is being purchased for $260,000 and is expected to have a $36,000 salvage value at the end of its 5-year useful life. Assume any remaining depreciation is claimed in the last year. Compute the depreciation schedules for this capital asset, using the following methods: (a) Straight-line depreciation (b) MACRS Note: No statement is required for this problem.arrow_forward
- Question-based on, "Asset purchased"... Simple I am confused about it and got an incorrect answer.arrow_forward9.9 Consider the following data on an asset: Cost of the asset, / Useful life, N Salvage value, S $123,000 7 years $13,000 Compute the annual depreciation allowances and the resulting book values, initially using the DDB and then switching to SL.arrow_forward
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