42. A machine cost P 2750000 and has a residual value at 7% of its cost, it is expected to havea useful life of 18 years, it's estimated used is 5000 hours in its entire life. After using itfor 1250 hours, find the accumulated depreciation.a. 735566b. 720435c. 639375d. 720320e. None of the above

Depreciation is the allocation of cost of asset over the useful life of the asset. There are several…

Answered: 42. A machine cost P 2750000 and has a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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5 My work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Required information [The following information applies to the questions displayed below.] Beacon Company is considering automating its production facility. The initial investment in automation would be $9.11 million, and the equipment has a useful life of 7 years with a residual value of $1,200,000. The company will use straight- line depreciation. Beacon could expect a production increase of 44,000 units per year and a reduction of 20 percent in the labor cost per unit. Current (no automation) 71,000 units Proposed (automation) 115,000 units Per Per Production and sales volume Unit Total Unit Total Sales revenue $90 $ ? $90 $ ? Variable costs Direct materials $16 $ 16 Direct labor 15 ? Variable manufacturing overhead 9 9 Total variable manufacturing costs Contribution margin 40 ? $50 Fixed manufacturing costs Net operating income ? $ 1,130,000 $ 53 ? $…
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5- Ferguson Company purchased a depreciable asset for €100,000. The estimated residual value is €10,000, and the estimated useful life is 10 years. The straight-line method will be used for depreciation. What is the depreciation expense of this asset? a. €10,000 b. €100,000 C. €90,000 d. €9,000
EXERCISE/TUTORIAL12. 1 A 2 Rubicon Limited purchased machinery on 1 January 20.1 at a cost of R70 000. It has an expected useful life of ten (10) years with no residual value. REQUIRED 1. Calculate the Depreciation on machinery for 20.1 and 20.2 if: a. The straight-line method is used. b. The diminishing amount method is used (rate 20%). c. Sum-of-the-years-digit method is used. 2. Discuss the effect of a change in the method of depreciation from the straight- line method in 20.1 to the diminishing amount method in 20.2.
N6 A new machine tool is being purchased for $260,000 and is expected to have a $36,000 salvage value at the end of its 5-year useful life. Assume any remaining depreciation is claimed in the last year. Compute the depreciation schedules for this capital asset, using the following methods: (a) Straight-line depreciation (b) MACRS Note: No statement is required for this problem.
Equipment with a cost of $82,805, an estimated residual value of $4,980, and an estimated life of 15 years was depreciated by the straight-line method for 6 years. Due to obsolescence, it was determined that the remaining useful life should be shortened by 4 years and the residual value changed to zero. The depreciation expense for the current and future years is a.$5,167.50 b.$3,445.00 c.$10,335.00 d.$31,130.00

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