depreciation expense for year 3 would be
Q: Solid Builders Corporation purchased a transport mixer for P984 000.00. This equipment is to be…
A: The Matheson formula assumes that depreciation is a fixed charge of annual cost. Annual rate of…
Q: Swifty Corporation purchased a depreciable asset for $359100. The estimated salvage value is $33500,…
A: Depreciation base of the asset = Cost - Salvage value
Q: g the declining balance method, determine the depreciation charged for 2004 and the book value at…
A: a. Sum of year digit method:
Q: Equipment costing $78000 with a salvage value of $18000 and an estimated life of 8 years has been…
A: Depreciation as per straight-line method = (Cost - salvage value)/Useful life
Q: An equipment worth Php 350000 has an anticipated salvage value of Php (15000x8) at the end of its…
A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/5 years) x 2 = 40%
Q: A machine purchased for P315374 has a depreciable life of 7 years, and it has a terminal book…
A: Depreciation is the allocation of cost of asset over the useful life of the asset. Under straight…
Q: A machine purchased for $315653 has a depreciable life of 7 years, and it has a terminal book…
A: Depreciation is allowed as an expense for cost of machine during the life of machine. Straight line…
Q: An asset was purchased six years ago at a cost of ₱7,000. It was estimated to have a useful life of…
A: Sunk cost is the expense which had been incurred but not recovered yet. Cost of equipment or lease…
Q: An asset was purchased for $257000. It had an estimated salvage value of $49000 and an estimated…
A: Lets understand the basics. In straight line basis, depreciation is calculated in equal installment…
Q: A machine with a cost of $474000 has an estimated salvage value of $24000 and an estimated useful…
A:
Q: Equipment with a cost of $95,550, an estimated residual value of $4,550, and an estimated life of 13…
A: Depreciation as per straight line method is given as under: = (Original cost - Salvage value) ÷…
Q: When originally purchased, a vehicle costing $25,380 had an estimated useful life of 8 years and an…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: When originally purchased, a vehicle costing $23,000 had an estimated useful life of 8 years and an…
A: The computation is as follows: Hence, option A) $5,000 is the correct answer.
Q: Equipment with a cost of $74,874, an estimated residual value of $4,863, and an estimated life of 14…
A: Solution: Original annual depreciation = (Cost - Residual value) / useful life = ($74,874 - $4,863)…
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: A company that manufactures pulse Doppler insertion flow meters uses the straight line method for…
A: Depreciation: It refers to a gradual decrease in the fixed asset’s value because of obsolescence,…
Q: Equipment with a cost of $70,969.00, an estimated residual value of $6,221.00, and an estimated life…
A: cost = $70,969.00 estimated residual value = $6,221 estimated life = 11 years , depreciation done…
Q: An asset was purchased six years ago at a cost of P7,000. It was estimated to have a useful life of…
A: Given that: Original cost = P7000 Salvage Value = 300
Q: A central air conditioning unit was installed on January 1, 2000 at an initial cost of P650,000 and…
A: Depreciation can be defined as the decline in the value of asset due to its usage in the business…
Q: A machine that cost $ 20,000 has been depreciated on a straight line basis assuming a service life…
A: Annual Depreciation = (Cost of the assets - Salvage value) / life of the assets = ($20,000 - 0) / 10…
Q: An earth moving equipment that cost P 90,000 will have an estimated salvage value of P18,000 at the…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: Equipment with a cost of $477400 has an estimated salvage value of $55000 and an estimated life of 4…
A: Depreciation is the way of allocating the cost of the assets over the life of the asset, it can be…
Q: wifty Corporation constructed a building at a cost of $14200000. Weighted-average accumulated…
A: Borrowing cost means where the assets like building , take substantial time to build , then interest…
Q: An earth moving equipment has a first cost of P 25,000, estimated life of 6 years, with no salvage…
A: In Sinking fund method, the depreciation of the asset is calculated to accumulate the amount of…
Q: Equipment with a cost of $73,163.00, an estimated residual value of $5,819.00, and an estimated life…
A: Annual depreciation = (cost of the assets - residual value)/ Life of the assets = ($73,163-$5,819) /…
Q: A plant asset cost P96,000 and is estimated to have a P12,000 salvage value at the end of its 8-year…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: Equipment with a cost of $148,767.00 has an estimated residual value of $8,167.00 and an estimated…
A: There are different types of depreciation methods In this question, it has to be depreciation using…
Q: When originally purchased, a vehicle costing $24,120 had an estimated useful life of 8 years and an…
A: IAS(International Accounting Standard)-16 Property, Plant, and Equipment provide that whenever there…
Q: when originally purchased, a vehicle costing 23,760 had an estimated useful life of 8 years and an…
A: The depreciation expense is the decrease in the value of fixed assets with the passage of time.
Q: truck costing $20,000 was purchased on January 1, 2004. It was depreciated using the straight-line…
A: Answer - Straight Line Depreciation Uniform depreciation of an asset's value Home › Resources ›…
Q: A firm bought a machine for P56, 000. Other expenses including installation amounted to P4, 000. The…
A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…
Q: Equipment with a cost of $446,900 has an estimated residual value of $51,400, has an estimated…
A: depreciation = cost - residual value/ useful life. Carrying amount = cost -depreciation.
Q: Equipment with a cost of $662000 has an estimated salvage value of $50000 and an estimated life of 4…
A: Depreciation is the method of allocating the cost of a asset over its useful life. Depreciation…
Q: The total depreciation of an equipment after its 22 years of useful life is P621,765. Using the…
A: >Accounting principle states that the cost of the long-term assets (like equipment) is to be…
Q: A machine purchased for #919866 has a depreciable life of 7 years, and it has a terminal book…
A: Depreciation expense is the amount that a company's assets are depreciated for a single period,…
Q: A building which was constructed for Php 1,000,000 has an estimated life of 15 years and a salvage…
A: Depreciation is a sort of outlay which has to be reported by the entity for recording the regular…
Q: Prepare the depreciation schedule for the machines using double decline method over 4 years from…
A: Depreciation is the reduction or decrease in value of fixed assets over the period of time. Several…
Q: A new machine costs $12,000 and has a $1300 salvage value at the end of its 8-year useful life.…
A: Depreciation:-It is an expense incurred in the normal use of fixed assets. The whole value of the…
Q: Equipment costing $70,000 with a salvage value of $14,000 and an estimated life of eight years has…
A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…
Q: Please assist in solving the problem below. Thanks Bramble Corp. purchased a depreciable asset for…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: Equipment costing $34000 with a salvage value of $ 18000 and an estimated life of 8 years has been…
A: Accumulated depreciation for 2 years = (Cost - salvage) * 2/ 8 = (34000 - 18000) * 2/ 8 = $4000 Book…
Q: salvage value of $30,000 and an estimated life of 4 years or 10,000 hours. It is to be depreciated…
A: Cost of equipment = $450,000 Salvage value = $30,000 Estimated useful life = 10,000 hours…
Q: Equipment with a cost of $798000 has an estimated salvage value of $30000 and an estimated life of 4…
A: Depreciation has considered a reduction in the value of assets due to the uses of that asset. We can…
Q: You purchased a molding machine at a cost of $88,000. It has an estimateduseful life of 12 years…
A: The Numerical has covered the concept of Depreciation Accounting. Depreciation is a Non Cash…
Q: Welding machine cost P50,000 and has a life of 12 years and a salvage value of P8,000 at the end of…
A: Cost = P 50000 Expected Life of the Welding machine = 12 years Depreciation on 1st Year = Cost * ( 1…
Q: Equipment with a cost of $82,805, an estimated residual value of $4,980, and an estimated life of 15…
A: Depreciation expense=Cost-Residual valueEstimated life=$82,805-$4,98015=$5,188 Compute the…
Q: An engineer bought equipment for P500,00O. HE spent an additional amount of P30,000 for installation…
A: Total cost of the equipment = P500,000 + P30,000 = P530,000 Annual depreciation = Total…
Q: An equipment is bought at P420,000 with an estimated salvage value of P50,000. Using the Declining…
A: Under Declining Balance Method, Rate of Depreciation = 1 - (Scrap Value / Cost)^(1 / Useful Life)
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.
Equipment costing $71000 with a salvage value of $13000 and an estimated life of 8 years has been
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- A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.To test your formulas, assume the machine purchased had an estimated useful life of three years (20,000, 30,000, and 50,000 hours, respectively). Enter the new information in the Data Section of the worksheet. Does your depreciation total 320,000 under all three methods? There are three common errors made by students completing this worksheet. Lets clear up two of them. One, an asset that has a three-year life should have no depreciation claimed in Year 4. This can be corrected using an =IF statement in Year 4. For example, the correct formula in cell C32 is =IF(B32D9,0,(D7D8)/D9) or =IF(B32D9, 0, SLN(D7, D8, D9)). You may wish to edit what you have already entered rather than retype it. Two, as mentioned in requirement 2, the double-declining-balance calculation needs to be modified in the last year of the assets life. Assuming you have already modified the formula for Year 4 (per instructions in step 2), alter the formula for Year 3 also. If you corrected any formulas, test their correctness by trying different estimated useful lives (between 3 and 8) in cell E9. Then reset the Data Section to the original values, save the revised file as DEPREC2, and reprint the worksheet to show the correct formulas. The third common error doesnt need to be corrected in this problem. The general form of the double-declining-balance formula needs to be modified to check the net book value of the asset each year to make sure it does not go below salvage value. =DDB does this automatically, but if you are writing your own formulas, this gets very complicated and is beyond the scope of the problem.Equipment with a cost of $950000 has an estimated salvage value of $30000 and an estimated life of 4 years or 20000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used for 5000 hours?
- Equipment costing $83000 with a salvage value of $15000 and an estimated life of 8 years has been depreciated using the straight-line method for 2 years. Assuming a revised estimated total life of 5 years and no change in the salvage value, the depreciation expense for year 3 would be $17000. $10200. $14200. $22000.Equipment costing $78000 with a salvage value of $18000 and an estimated life of 8 years has been depreciated using the straight-line method for 2 years. Assuming a revised estimated total life of 5 years and no change in the salvage value, what would be the depreciation expense for year 3?A new barcode reading device has an installed cost basis of $21,490 and an estimated service life of eight years. It wilI have a zero salvage value at that time. The 200% declining balance method is used to depreciate this asset. a. What will the depreciation charge be in year eight? b. What is the book value at the end of year seven? c What is the gain (or loss) on the disposal of the device if it is sold for $2,400 after seven years? a. The depreciation charge in year eight will be $ (Round to the nearest dollar.) b The book value at the end of year seven is S. (Round to the nearest dollar.) c The on the disposal of the device ifit is sold for $2,400 after seven years is S. (Round to the nearest dollar.) loss gain
- An automated assembly robot that cost $352,000 has a depreciable life of 5 years with a $85,000 salvage value. The MACRS (Modified Accelerated Cost Recovery System) depreciation rates for years 1, 2, 3, and 6 are 20.00%, 32.00%, 19.20%, and 5.76%, respectively. What is the book value at the end of year 3? Year 5? Year 6? The book value at the end of year 3 is $ . The book value at the end of year 5 is $ . The book value at the end of year 6 is $ .A new barcode reading device has an installed cost basis of $20,670and an estimated service life of seven years. It will have a zero salvage value at that time. The 200% declining balance method is used to depreciate this asset. a. What will the depreciation charge be in year seven? b. What is the book value at the end of year six? c. What is the gain (or loss) on the disposal of the device if it is sold for $1,000 after six years? a. The depreciation charge in year seven will be ... nothing. b. The book value at the end of year six is ... nothing. c. The ... loss gain on the disposal of the device if it is sold for $1,000 after six years is .. nothing.An automated assembly robot that cost $400,000 has a depreciable life of five years with a $100,000 salvage value. If the MACRS depreciation rates for years 1, 2, and 3 are 20.00, 32.00, and 19.20%, respectively, what is the book valueof the robot at the end of year three?
- A new barcode reading device has an installed cost basis of $24,750 and an estimated service life of seven years. It will have a zero salvage value at that time. The 200% declining balance method is used to depreciate this asset. Solve, a. What will the depreciation charge be in year seven? b. What is the book value at the end of year six? c. What is the gain (or loss) on the disposal of the device if it is sold for $800 after six years?Ane barcode reading device has an instated cost basis of $21,760 and an estimated service life of seven years it will have a zero salvage valun at that time. The 150% deckning balance method is used to depreciate this asset a. What will the depreciation charge be in yearseven? b. What is the book value at the end of years? e What is the gain (or loss) on the disposal of the device if it is sold for $900 after six years? a. The depreciation charge in year soven will be $(Round to the nearest dollar) CETTE. An asset was purchased six years ago at a cost of P7,000. It was estimated to have a useful life of ten years with a salvage value of 300 at the end of the time. It is now of no future use and can be sold for only P800. Determine the sunk cost if the depreciation has been computed by: a. The straight-line method. b. The sum-of-the-year’s digits method
