Problem 1: A civil engineer bought a crane for erecting tall buildings. It was invoiced from Japan (Cost, Insurance, freight) to Manila ay P 60, 000. Brokerage, custom's, permits and etc. total P 120,000. At the end of 10 years, he expects to sell it for P 70,000. Tabulate and determine the depreciation charge during the 4th year and the book value at the end of 6th year(show solution at these years) using the following:

Problem 1: A civil engineer bought a crane for erecting tall buildings. It was invoiced from Japan (Cost, Insurance, freight) to Manila ay P 60, 000. Brokerage, custom's, permits and etc. total P 120,000. At the end of 10 years, he expects to sell it for P 70,000. Tabulate and determine the depreciation charge during the 4th year and the book value at the end of 6th year(show solution at these years) using the following:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Problem 1: A civil engineer bought a crane for erecting tall buildings. It was invoiced from Japan (Cost, Insurance, freight) to Manila ay P 60, 000. Brokerage, custom's, permits and etc. total P 120,000. At the end of 10 years, he expects to sell it for P 70,000. Tabulate and determine the depreciation charge during the 4th year and the book value at the end of 6th year(show solution at these years) using the following:
Q5: Oman Flour mills purchased an equipment and it will be depreciated in such a way that the value of equipment at the end of any year is 90% of the value at the beginning of the year. The actual cost of the machine is OMR 20,000. a) What will be the scrap value of the equipment if the estimated useful life of the equipment is 6 years? b) After 6 years, the company got an offer to sell the scrap at a value of OMR 8,000. Shall company accept the offer? Discuss and give reasons to your answer.
A civil engineer bought a crane for erecting tall buildings. It was invoiced from Japan (Cost,Insurance, freight) to Manila ay P 60, 000. Brokerage, custom’s, permits and etc. total P 120,000. At the end of10 years, he expects to sell it for P 70,000. Tabulate and determine the depreciation charge during the 4th year andthe book value at the end of 6th year(show solution at these years) using the following: Show solutions for the first 2 yrs
A machine which cost Php i0,000 was sold as scrap after being used for ten years. If the Scrap valug was Php500, de termine the total depreciation and book value at the end of Lhe 5th year.
D
A company purchases an asset of Php15,000 and plans to keep it for 20 years. If the salvage value is zero at the end of 20 years, what is the depreciation in third year? Use Sum of the Years Digit method.
An x-ray machine at a dental office is MACRS 5-year property. The x-ray machine costs $6,000 and has an expected useful life of 8 years. The salvage value at the end of 8 years is expected to be $500. Assuming MACRS depreciation, what is the book value at the end of the third year? a. $1,584b. $1,728 c. $3,916 d. $4,272
4. A broadcasting corporation purchased equi pment worth P57, 000 and paid P1, 500 for freight and delivery charges to the site. The equ i pment has a normal life of ten years with a trade-in vaíue of P5, 000 against the purchase of new equipment at the end of life. The interest is 6%. a. What is the annual depreciation cost? b. What is the total depreciation cost in 7 years? c. What is the book value in 7 years?
sinking fund
George Company has the opportunity to purchase an asset that costs $40,000. The asset is expected to increase net income by $10,000 per year. Depreciation expense will be $5,000 per year. Based on this information the payback period is: A) 4 years. B) 2.5 years. C) 2.67 years. D) 8 years.
Q4: A construction machine was purchased at a price of $10,000 with a recovery value of $2000 after a useful life of 12 years. The machine was sold at the end of the fifth year, and the amount was saved in the bank. What is the value of the withdrawn amount after 10 years , if the interest of the bank is 15%. It was completed Calculation of depreciation by the method of offsetting depreciation.
1. A commercial company plans to buy the device for $ 20,000 and is expected to sell it for $ 8,000 in the future. The useful life of the device is estimated at 8 years. It is desirable to calculate the depreciation of each year and the book value of each year using any of the following methods: a) Linear b) Sum of year figures c) Trial balance