The depreciation deduction for year 11 of a 15-year property with a 20-year class life is $4,000. If the salvage value of the asset is estimated to be $5,000 and MACRS-GDS is used to calculate the depreciation deduction for year 11, what was the initial cost of the asset? a. $42,105 b. $67,682 c. $72,682 d. $80,000.

Q: Assume that a company acquired a building on January 31, 20x1 at a cost of P1,000,000. The building…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

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: A MACRS-depreciated asset has B = $100,000, S = $40,000, and a 10-year recovery period. (The dt…

A:

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: Prepare a depreciation table for an asset that was bought at P150, 000 and estimated to be useful…

A: Depreciation refers to a decline in the value of a fixed asset over its useful life. The straight…

Q: Entity A acquired an asset that had a cost of P130,000. The asset is being depreciated over a 5-year…

A: Depreciation Expenses:- It is an expense incurred due to the continuous use of an asset. In this,…

Q: The cost of the building is OMR 20,000. The salvage value OMR 2,000. Estimated useful life of the…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: Assume that a company acquired a building on January 31, 20x1 at a cost of P1,000,000. The building…

A: Depreciation means fall in value of assets because of use of assets , passage of time or change in…

Q: A depreciable property costing P1,400,000 with original residual value of P80,000 after 10 years,…

A:

Q: The FC of asset is P710 000 while its salvage is P95 000. What is the depreciation charge during the…

A: Sum of digits  = 1+ 2 + 3 + 4 + 5 + 6 + 7 + 8+ 9 + 10 = 55 Third Year Depreciation  = ( Asset Value…

Q: 1. A telephone company purchased a microwave radio equipment for 6MPhp. Freight and installation…

A: Given: Telephone Radio Equipment = 6M = Php 6,000,000 Freight = 3% * 6000,000 = Php 180,000 Salvage…

Q: A building maintenance bought a pump set for 90,000. Installation cost amounted to P10,000. The pump…

A: Depreciation refers to a reduction or decrease in the value of the physical asset during the…

Q: A telephone company purchased a microwave radio equipment for P5,000,000. Freight and installation…

A: Installation charges = P5,000,000*2% Installation charges = P100,000

Q: A manufacturing system for fabricated metal products is purchased in the middle of the fiscal year…

A: Manufacturing business entity can be defined as the business were the raw materials are processed…

Q: An asset was purchased and installed for $277,685. The asset is classified as MACRS 7-year property.…

A: Depreciation: Generally speaking, the word "depreciation" refers to an accounting process that is…

Q: Refer to Exhibit 12.4 in the text. What is the depreciation expense deduction in each of 4 years for…

A: Depreciation is a charge calculated on the value of fixed assets, based on normal wear and tear due…

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: An asset was purchased for $124,000 on January 1, Year 1 and was originally estimated to have a…

A: The depreciation expense is charged on fixed asset as reduction in the value of fixed assets with…

Q: The following information is available on a depreciable asset: Purchase date January 1, Year 1…

A: Given,           Depreciation method = Straight line           Useful life(from January 3, year 3 to…

Q: A building was purchased for $400,000 and depreciated for 10 years on a straight-line basis under…

A: Depreciation formula as per straight-line basis: Annual depreciation=Cost-Salvage valueUseful Life

Q: An industrial plant bought a generator set for P90,000. 0ther expenses including installation…

A: Depreciation is a method of accounting for allocating the cost of a substantial or physical property…

Q: A company bought an equipment fee for P56,000. Other expenses including installation amounted to…

A: Depreciation: Due to usage, passes of time, obsolete and accident reduction in the value of fixed…

Q: An industrial plant bought a generator set for P90,000. Other expenses including installation…

A:

Q: 2. Assuming a seven-year class of property, compute MACRS depreciation expense for each year of the…

A: Business organizations are required to charge the depreciation expense so as to shown the value of…

Q: A depreciable asset currently has a $40,100 book value. The company owning the asset uses…

A: Formula: Straight line method = ( Cost of Asset - Salvage value ) / useful life

Q: A company has purchased a capital asset for $21.2 million. The asset belongs to the 5-year MACRS GDS…

A:

Q: An asset was purchased for $112,000 on January 1, Year 1 and originally estimated to have a useful…

A: Accumulated depreciation, January 1, Year 3 = [($112,000 - $10,000) / 11 years] x 2 years =…

Q: An asset was purchased for $138,000.00 on January 1, Year 1 and originally estimated to have a…

A:

Q: A lumber company purchases and installs a wood chipper for $200,000. The chipper is classified as…

A: Depreciation is allocation of capital investment over economic life of asset. It occurs due to fall…

Q: A general-purpose truck is purchased for $36,000. It is a MACRS-GDS 5-year property and qualifies…

A: Depreciation: Depreciation is a gradual fall in the recorded historic value of the asset due to its…

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: The depreciation deduction for year 11 of an asset with a 20-year useful life is $4,000. If the…

A: The Numerical has Covered the concept of Straight Line Method of Depreciation. As the name suggests,…

Q: An asset was originally purchased by the Sampson Corp. for $260,000. The depreciable base was…

A: Lets understand the basics. Salvage value is value expected to be derived from the sale of machinery…

Q: A certain office equipment has a first cost of 29,788 and has a salvage value of 1,358 at the end of…

A: First Cost of Equipment= $29788 Salvage Value= $1358 Cost-Salvage Value= $29788-$1358…

Q: Consider a five-year MACRS asset purchasedat $80,000. (Note that a five-year MACRS propertyclass is…

A: MACRS is a depreciation method in which an asset is depreciated fastly in the initial days &…

Q: Pinewood Corporation purchased a piece of equipment for S70,000. It estimated an 8-year life and a…

A: Answer 1) Calculation of Depreciation expense as per Original Estimate Annual depreciation expense =…

Q: XZelent Corporation purchased equipment at a cost of P18M. The cost of repairs amounted to P2.5M.…

A: Sum of Years Depreciation (SYD): It is an accelerated depreciation technique. The dual decreasing…

Q: A company purchased an equipment costing $60,000. The equipment has guaranteed useful life of 16…

A: The formula for Depreciation as per the sinking fund method: Dt = ( A-S ) ( 1 + j )( t - 1 ) / Sn|j…

Q: An asset was purchased for $103,000 on January 1, Year 1 and originally estimated to have a useful…

A: Depreciation is a non-cash expense which is recorded to report the regular wear and tear of an…

Q: An asset was purchased for $126,000.00 on January 1, Year 1 and originally estimated to have a…

A: Depreciation ( Straight Line Method) = Total Cost of Assets - Salvage Value / No. Of useful life

Q: An asset was purchased for P1,000,000.00 to be retired at the end of 15 years with salvage value of…

A: Capitalised cost refers to the expenditures incurred on fixed assets. The fixed cost is the part of…

Q: Assume that a company acquired a building on January 31, 20x1 at a cost of P1,000,000. The building…

A: It is the amount that declines the value of an asset every year.

Q: Mark Industries uses the straight-line depreciation method. One asset had been purchased for…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: company has purchased a bus for its officers for P14,00,000. the expected life of the bus is 8…

A: The question is based on the concept of Depreciation Accounting.

Q: Peter M. Dell Co. purchased equipment for $510,000 which was estimated to have a useful life of 10…

A: a. No entry is required to correct the prior Years' depreciation

Q: COCOLOS Industries uses the straight-line depreciation method. One asset had been purchased for…

A: Straight-line Method: Depreciation and amortization, or the mechanism of depreciating and amortizing…

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)

Q: An asset was purchased for $115,000 on January 1, Year 1 and originally estimated to have a useful…

A: Annual Depreciation (Straight line method) = (Cost of the assets - Salvage value) / Life of the…