Answered: .Depreciate this asset using straight…

Business

Accounting

.Depreciate this asset using straight line depreciation and declining balance depreciation.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Consider an asset with a cost basis of $10,000 that has been depreciated using 100% bonus…

A: The bonus deduction allows deducting 100% of the cost in the first year instead of different years…

Q: An equipment cost P60,000 today and its salvage value is P20,000 after 6 years. Calculate its…

A: The asset is purchased by a firm so that it can be used in the operation of the business. Due to the…

Q: 5.) Show in tabular form [depreciation schedule] the computation for the annual depreciation…

A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Amachine whose cost is 80.000 nyals and s value as scrap is 5,000 ryals and its useful ife is 5…

A: Calculation of depreciation using the Double Declining Balance method: Year Depreciation…

Q: Using Declining Balance Method, a machine with an initial cost of $200,000 and a life of 10 years.

A: The value of the specific machinery or asset after its effective or expected life of usage is…

Q: What is the sunk cost if the depreciation method is a straight-line method?

A: Sunk cost costs are those costs or expenses that already been spent and cannot be recovered.…

Q: salvage value of 10,000.00

A: Double declining method of depreciation where as per the double declining rate , the annual…

Q: 8. A machine has an initial cost of $ 50,000, annual operation and maintenance cost of $ 5,000 a…

A: Depreciation seems to be the process of reducing the value of physical assets such as machinery,…

Q: Tiffany bought a piece of equivalent for $40,000. The equipment has a useful life of 5 years ane a…

A: Answer) Calculation of Depreciation expense for Year 1 Depreciation expense for year 1 = Original…

Q: MONIBABA Company purchased a machine cost N50000 and will generate the following profits Year 1 3 4…

A: Annual depreciation (straight line basis) = (Cost of the assets - Scrap value) / Estimated life of…

Q: 2. The purchased price of the equipment is P12,000 and its estimated maintenance costs are P500 for…

A: Purchase price = P 12000 Maintenance cost for first year = P 500 Maintenance cost for second year =…

Q: What is the value of an asset after 8 years of use if it depreciates from its original value of P…

A: Working note: Computation of annual depreciation as per straight line method: Annual…

Q: 8) A machine costing P2,500 has an estimated useful life of 4 years with a scrap value of P500.…

A: Depreciation refers to the reduction in the value of asset due to its normal use and tear and wear.…

Q: An asset cost $200,000. It has a salvage value of $40,000. It has a 10 year life. What would be…

A: Annual Depreciation under Straight-Line Method = (Cost - Salvage Value) / Useful Life

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: What is the depreciation deduction each year, using each of the methods below, for an asset that…

A: Depreciation is the reduction in the value of assets due to normal wear and tear, passage of time,…

Q: You are to create a year-by-year depreciation schedule for an asset that has a cost basis (B) of…

A: The salvage Value is $80,000 The price of the Equipment is $950,000 Project life is 10 years To…

Q: A dump truck was bought for P30,000 six years ago. It will have a salvage value of 3,000 four years…

A: Depreciation is the reduction in the value of asset because of its use & obsolescence.…

Q: A new barcode reading device has an installed cost basis of $21,490 and an estimated service life of…

A: The calculation of depreciation expense for the year eight, book value at the end of year seven and…

Q: What is the depreciation each year for a trailer that cost $10,000 new, has a life of 5 years, and a…

A: Every fixed asset loses its value over a period. Depreciation is recorded on the cost of assets to…

Q: Suppose you purchase a tangible asset with a book value of $700,000. The salvage value is $ 100,000.…

A: The total depreciation expense recorded for an asset since its acquisition is known as accumulated…

Q: XYZ bought an asset that cost $200,000 at the beginning of the year. It has a salvage value of…

A: Depreciation appears to be the amount through which the cost of fixed assets is reduced as a result…

Q: If B= $500,000, the anticipated life (n) is 10 years, salvage value is $50,000, what would be the…

A: Formula: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period…

Q: 21. An engineer bought equipment for P500,000. HE spent an additional amount of P30,000 for…

A: Depreciation is a way of declining the cost of assets over the useful life of assets, the company…

Q: An asset was purchased for $257000. It had an estimated salvage value of $49000 and an estimated…

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

Q: a. The book value after five years using straight-line depreciation is $ (Round to the nearest cent…

A: Depreciation is the deduction in the value of fixed asset over the life of the asset. In straight…

Q: 1. An engineer with Accenture Middle East BV in Dubai was asked by her client to help understand the…

A: Lets understand the basics. Depreciation is a reduction in value of asset due to wear and tear,…

Q: the cost of a certain asset is 500000. its life is 10 years with a scrap value of 50000.using the…

A: Alternative 1 : Depreciation rate will be 2 X SLM rate SLM rate is 1/10 years = 10% therefore ,…

Q: ch of the following is used in computing cash payments for merchandise using the direct method?…

A: Merchandise refers to the variant types of commodities or goods that are being produced and sold by…

Q: An equipment cost P60,000 today and its salvage value is P20,000 after 6 years. Calculate its…

Q: The constant percentage method will be used to depreciation a machine with an initial cost of P 1.2…

A: Depreciation refers to the method which results in decrease in the value of the asset over the…

Q: A $100,000 asset has a $20,000 salvage value after its 10-year useful life. The depreciation…

A: Depreciation expense refers to the fall in the value of the asset due to passage of time, wear and…

Q: The amount of the average investment for a proposed investment of $172,000 in a fixed asset with a…

A: Average Investment = (Initial Investment + Scrap Value) / 2

Q: On 1/1/2020 you have purchased an asset with for $50,000. You estimate the useful life to be 5 years…

A: The straight line method is a way of depreciating assets. It is a method of allocating the cost of…

Q: You are to create a year-by-year depreciation schedule for an asset that has a cost basis (B) of…

A: The objective of the question is to create a depreciation schedule for an asset using three…

Q: What will the depreciation charge be in year seven? What will be the book value at the end of year…

A: Formula: Rate of DDB Depreciation= 100%Usefull Life×2 Given: CNC machine $35,000 Service life 7…

Q: What is the value of an asset after 8 years of use if it depreciates from its original value of…

Q: A machine costing $5000 has an accumulated depreciation of $3000 and the rate of depreciation is…

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

Q: A new machine tool is being purchased for $260,000 and is expected to have a $50,000 salvage value…

A: Straight-line depreciation is one of the methods of depreciation. As the name depicts, the…

Q: An asset in the USA was purchased for $ 12.65 Million. The expected service life is 15 years and…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Question

5.Suppose that the purchase price of a piece of equipment is $1million.its salvage value at the end of its 5 years service life is $500000.Depreciate this asset using straight line depreciation and declining balance depreciation.

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

Expert Solution

Step 1 Explanation:

1. Straight-line method:

Depreciation p.a. = (Cost - Salvage Value) / Useful life

2. Declining Balance method:

Depreciation rate = 100% / useful life

Depreciation = Current Book value x Depreciation rate

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

An automated assembly robot that cost $300,000 has a recovery period of five years with an expected $50,000 salvage value. If the MACRS depreciation rates for years 1, 2, and 3 are 20.0%, 32.0%, and 19.2%, respectively, what is the depreciation recapture, capital gain, or capital loss, provided the robot was sold after 3 years for $80,000?
5. A company buys an asset with a cost of $96,000. They decide on a 6-year useful life and a $6,000 salvage value. What is the MONTHLY depreciation using straight line depreciation?
A machine costs P 7,350, has a life of 8 years and has a salvage value of P 350 at the end of 8 years. In how many years from now when you can sell the machine at P 2,294.44 if depreciation used is SYD Method?
An underground rock mechanics testing device is to be double declining depreciated. It has a first cost of $25,000 and an estimated salvage of $2,500 after 12 years. (a) What is book value and market value ? (b)Calculate the depreciation and book value for years 1 and 4. (c) Calculate the implied salvage value after 12 years.
Using DBM, the book value of a machine on the 4th year and 7th year are P186,706 and P48,392 respectively. What is the salvage value if the machine has an estimated life of 14 years?4.If the depreciation on year 6 is 18,856 and the book value on the same year is 468,573 and money is worth 5.00%, find the salvage value of the equipment with expected life of 12 years using SFM. Write your final answer in two decimal places.
Q-1) If an asset has a first cost of SR 100000 with a SR 20000 estimated salvage value after 15 years, calculate the book value for each year by using SL and DDB methods. I have already calculated depreciation value, so no need to explain again.
Provide step by step manual solution, given, and depreciation table for below mentioned problem. Make sure yet that your answer is the same as the given answer before sending your solution. An asset costing P50,000 has a life expectancy of 6 years and an estimated salvage value of P8,000. Calculate the depreciation charge at the end of the fourth period using fixed-percentage method. Answer. P5,263.87
G
You have bought an asset which costs $15,000. You depreciate it using the Straight Line Depreciation method. If salvage value for the asset is $3,000, and the asset’s useful life is 3 years, what is the annual depreciation?
Can you help me solve this?
Show the solution in good accounting form
4.It is know that the book value of an asset depreciated through declining balance depreciation is $3000 in year 3.Purchase price of the asset was $3800.What is the asset salvage value at the end of its useful life,which is 10 years?