Multiple Choice. Encircle the letter of the LUIT solutions. (5pts each) 1. Luz Un Services acquired an equipment on July 1, 2001, for P80,000. The equipment has an estimated useful life of P10 years and an estimated salvage value of P5,000. Using this data, compute the depreciation on a straight-line basis. How much depreciation should be reCorded for 2001? a. P8,000 b. P7,600 P4,000 d. P3,750 G. 1. During April, P17,500 of equipment was acquired

A9

N6    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.

Question-based on, "Asset purchased"... Simple   I am confused about it and got an incorrect answer.

9.9 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.

E10.1 (LO 1) Excel (Depreciation Computations-SL, SYD, DDB)Deluxe Ezra Company purchases equipment on January 1, Year 1, at a cost of $469,000. The asset is expected to have a service life of 12 years and a salvage value of $40,000. Instructions a. Compute the amount of depreciation for each of Years 1 through 3 using the straight-line depreciation method. b. Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-the-years'-digits method. c. Compute the amount of depreciation for each of Years 1 through 3 using the double-declining-balance method. (In performing your calculations, round constant percentage to the nearest one-hundredth of a point and round answers to the nearest dollar.)