A bulding acquired at the beginring of the year at a cost of $2,200,000 has an estimated residual value of s400,000 andan estimated useful te of 20 years. Determine the following(a) The depreciable cost(b) The straight-line rate(e) The annual straight-line deprecation

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

Answered: A bulding acquired at the beginring of…

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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Your company has purchased a large new trucktractor for over-the-road use (asset class 00.26). It has a cost basis of $179,000. With additional options costing $14,000, the cost basis for depreciation purposes is $193,000. Its MV at the end of six years is estimated as $36,000. Assume it will be depreciated under the GDS: a. What is the cumulative depreciation through the end of year two? b. What is the MACRS depreciation in the second year? c. What is the BV at the end of year one? Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates (rk). a. The cumulative depreciation through the end of year two is $ (Round to the nearest dollar.) b. The MACRS depreciation in the second year is $ (Round to the nearest dollar.) c. The BV at the end of year one is $ (Round to the nearest dollar.)
Compute the declining-balance depreciation schedule for an asset with thefollowing data:
A plant asset cost $313600 and is estimated to have a $37000 salvage value at the end of its 8-year useful life. The annual depreciation expense recorded for the third year using the double-declining-balance method would be O $31170. O $39036. O $27720. O $44100.
Revision of depreciation. Equipment with a cost of $698,500 has an estimated residual value of $63,500, has an estimated useful life of 25 years, and is depreciated by the straight-line method. a. Determine the amount of the annual depreciation. $ b. Determine the book value after 13 full years of use. c. Assuming that at the start of the year 14 the remaining life is estimated to be 18 years and the residual value is estimated to be $53,300, determine the depreciation expense for each of the remaining 18 years.
onsider the following data on an asset:Cost of the asset, I $235,000Useful life, N 5 yearsSalvage value, S $ 60,000Compute the annual depreciation allowances and theresulting book values, using(a) The straight-line depreciation method.(b) The double-declining-balance method
Straight-Line Depreciation A building acquired at the beginning of the year at a cost of $134,200 has an estimated residual value of $5,200 and an estimated useful life of 10 years. Determine the following: (a) The depreciable cost (b) The straight-line rate % (c) The annual straight-line depreciation
Straight-Line Depreciation A building acquired at the beginning of the year at a cost of $134,200 has an estimated residual value of $5,200 and an estimated useful life of 10 years. Determine the following: (a) The depreciable cost (b) The straight-line rate % (c) The annual straight-line depreciation
For each of the following depreciable assets, determine the missing amount. Abbreviations for depreciation methods are SL for straight-line and DDB for double-declining-balance. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) Asset A B C D E Cost 68,000 93,000 258,000 214,000 Residual Value $ 34,000 13,000 24,000 34,000 Service Life Depreciation (Years) Method 5 8 10 8 DDB SL SL DDB Depreciation (Year 2) $ 39,000 5,900 10,000 23,400
Calculate the depreciation expense for an asset with the following details: Initial Cost: $50,000 Salvage Value: $5,000 Useful Life: 5 years
H1.
The double-declining-balance method is to be used for an asset with a cost of $90.000. estimated salvage value of $ 12.000. and estimated useful life of five years.(a) What is the depreciation for the first three tax years, assuming that the asset was placed in service at the beginning of the year?(b) If switching to the straight-line method is allowed, when is the optimal time to switch?
jaydeep

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A bulding acquired at the beginring of the year at a cost of $2,200,000 has an estimated residual value of s400,000 and an estimated useful te of 20 years. Determine the following (a) The depreciable cost (b) The straight-line rate (e) The annual straight-line deprecation