43. An asphalt and aggregate mixing plant having a capacity of 50 cu.m every hour costsP2500000. It is estimated to process 800,000 m³ during it's life. During a certain year, itproduced 60,0000 m³.. Using the service ouput method, if its scrap value is P100000,determine the total depreciation during the year.a. 180000b. 170000c. 160000d. 200000e. None of the above

Depreciation for the Year = (Cost - Scrap Value) x Production for the Year / Total Capacity

Answered: 43. An asphalt and aggregate mixing…

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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Engineering Economy, Chapter 16: Depreciation Methods The manager of a Glidden Paint manufacturing plant is planning to use SL, DDB or MACRS to compare the total depreciation of the first 3 years for a recently purchased mixer that has a first cost of 300,000 QAR, a 5-year recovery period, and a 60,000 QAR salvage value. Find total depreciation of the first three years and the book value at year 3 using SL, DDB and MACRS.
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9. Newson's Courier Service recently purchased a new delivery van for $29,000. The van is estimated to have a useful life of 8 years or 250,000 kilometres. The van will have a residual value of $1,000. The company uses the units-of- production method of depreciation. Assuming the van travelled 36,000 kms. during the first year, what is the depreciation expense for the van in year 1? A. $3,625 B. $3,500 C. $4,032 D. $4,176
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