Using the double declining balance method, Determine the yearly amortization of a car costing $45000 with a residual value of $4000. The car has an estimated life of 10 years and was purchased on July 1st. Include the yearly amortization of the asset for the 10 years.

Using the double declining balance method, Determine the yearly amortization of a car costing $45000 with a residual value of $4000. The car has an estimated life of 10 years and was purchased on July 1st. Include the yearly amortization of the asset for the 10 years.

Name: Using the double declining balance method, Determine the yearly amorti
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Using the double declining balance method, Determine the yearly amortization of a car costing $45000 with a residual value of $4000. The car has an estimated life of 10 years and was purchased on July 1st. Include the yearly amortization of the asset

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section9.A: Depreciation

Problem 2P

See similar textbooks

Similar questions

Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: A. A patent with a seventeen-year remaining legal life was purchased for $850,000. The patent will be usable for another six years. B. A patent was acquired on a new tablet. The cost of the patent itself was only $12,000, but the market value of the patent is $150,000. The company expects to be able to use this patent for all twenty years of its life.
An asset will cost $1,750 when purchased this year. It is further expected to have a salvage value of $250 at the end of its five-year depreciable life. Calculate complete depreciation schedules giving the depreciation charge, D(n), and end-of-year book value, B(n), for straight-line (SL), sum of the years digits (SOYD), double declining balance (DDB), and modified accelerated cost recovery (MACRS) depreciation methods. Assume a MACRS recovery period of 5 years.
An equipment costing P220,000 has an estimated life of 14 years with a book value of P30,000 at the end of the period. Compute the depreciation charge and its book value after 10 years using: a. straight-line method b. sinking fund method c. declining balance method d. sum of year's digit method
A company bought a machine for BD 250,000 which has a useful life of 10 years and can be sold for BD50,000 at the end of its useful life.Determine the depreciation on the 8th year and book value at the end of 8th year using sinking fund if interest is 12%. Prepare the depreciation schedules.
An asset has a first cost of Rs. 48,000 with an estimated life of 20 years. What is the total accumulated depreciation charge during the first 5 years of the asset life if it is depreciated according to DDB Method?
Consider the following data on an asset: • Cost of the asset = $38,000 • Useful life = 6 years • Salvage value = $5,000 Compute the annual depreciation allowances and the resulting book values using a 150% declining balance method. Make sure that the last year's book value equals to the salvage value.
1. The cost of a certain machinery is $30,000. Its useful life is 6 years, and its resale value is $5,000. Estimate the book value of the machine after 2 years, using constant percentage depreciation method. Tabulate the annual depreciation amounts and the book value of the equipment at the end of each year.
The cost of a certain asset is P 500,000. Its life is 10 years with a scrap value of P 50,000. Using the declining balance method, find the total depreciation after 5 years.
a) an asset is purchased for $200,000. The estimated life is 8 years and the salvage value is $20.000.assuming the item is depreciated via straight line method, find the book of the asset at the end of 5 years? b) If one-time amount of $500 is invested at an annual interest rate of 8% (compound annually), find its future worth at the end of 20 years?
A machine can be purchased for $50,000 and used for five years, yielding the following income. This income computation includes annual depreciation expense of $10,000. Income Year Year 1 $3,300 Initial invest Year 1 Year 2 Year 3 Year 4 Year 5 Year 2 $8,300 Compute the machine's payback period. Note: Round payback period answer to 2 decimal places. Net Income Depreciation 3,300 8,300 30,000 12,400 33,200 Year 3 $30,000 Year 4 $12,400 Net Cash Flow $ (50,000) $ Payback period = Year 5 $33,200 Cumulative Net Cash Flow (50,000) 0 0
A certain equipment has a value of 50000$, a service life of 20 years and salvage value of 4000$. Make the necessary depreciation calculations for 5 years using the declining balance method. Show in a table the value of depreciation each year, the accumulated depreciation and the book value for 5 years