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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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You have a tax basis of $80,000 and a useful life of five years and no salvage value. Provide a
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- An asset cost $200,000. It has a salvage value of $40,000. It has a 10 year life. What would accumulated depreciation be at the end of three years assuming straight line depreciation? Group of answer choices $60,000 $40,000 $48,000 $160,000arrow_forwardExplain why fixed assets are depreciated. A patent is purchased at a cost of $100,000, and the buyer expects the useful life to be 20 years. What is the adjusting entry needed at year-end? What is the reasoning of using the declining balance method? A delivery truck that costs $40,000 has a residual value of $8,000 and a useful life of 160,000 miles and the truck was driven 20,000 miles that year. Calculate the first year’s depreciation. What is the book value of the truck at the end of the first year?arrow_forwarda. Using straight-line depreciation, what is the book value after five years for an asset costing $150,000 that has a salvage value of $35,000 after 20 years? What is the depreciation charge in the sixth year? b. Using declining-balance depreciation with d = 25 percent, what is the book value after five years for an asset costing $150,000? What is the depreciation charge in the sixth year? c. What is the depreciation rate using declining balance for an asset costing $150,000 and having a salvage value of $35,000 after 20 years? a. The book value after five years using straight-line depreciation is $. (Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)arrow_forward
- An equipment costing P250,000 has an estimated life of 15 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 straight-line method.arrow_forwardYou are to create a year-by-year depreciation schedule for an asset that has a cost basis (B) of $950,000 and estimated salvage value (SV10) of $80,000 after 10 years. For the straight-line and 200% declining balance methods, use a depreciable life (N) of 10 years. For MACRS, use a recovery period (N) of 7-yrs. ΕΟΥ, Κ 0 1 2 3 4 5 6 7 8 9 10 Straight-Line dk BVk 950,000 Declining Balance dk BVk 950,000 MACRS dk BVk 950,000 Upload your table AND summary calculations to this assignment. You do not need to show EVERY calculation but you do need to include the equations you used to complete the table.arrow_forwardPlease solve this question in 20 minutes and get a thumbs uparrow_forward
- 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 0arrow_forwardA machine can be purchased for $150,000 and used for five years, yielding the following net incomes. In projecting net incomes, straight-line depreciation is applied using a five-year life and a zero salvage value. Compute the machine’s payback period (ignore taxes). (Round the payback period to three decimals.) Year 1 Year 2 Year 3 Year 4 Year 5 Net income . $10,000 $25,000 $50,000 $37,500 $100,000arrow_forwardA machine can be purchased for $150,000 and used for five years, yielding the following net incomes. In projecting net incomes, straight-line depreciation is applied using a five-year life and a zero salvage value. Compute the machine’s payback period (ignore taxes). (Round the payback period to three decimals.)arrow_forward
- Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardA machine costs $20,000. The machine can be disposed of after 2 years for $10,000. What is the ordinary gain using the following depreciation methods? 100% bonus depreciation. 5-year MACRS. 150% declining balance with N=5 yearsarrow_forwardCost of an Xray-machine is 1,500,000.00that has a useful life of 10 years, salvage value of 20,000 pesos. find the 5th year depreciation using double declining balance method.arrow_forward
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