Answered: A company buys a $73,580 asset. Salvage…

A company buys a $73,580 asset. Salvage will be $3,689 at the end of 12 years useful life. Using straight line (SLN) depreciation, what is the total depreciation in year 5?

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: An asset costing $20,000 has estimated useful life of 5 years and salvage value of $4,500. Calculate…

A: >Accounting principle states that the cost of the long term assets (like equipment) is to be…

Q: If the depreciation on year 8 is 15,282 and the book value on the same year is 424,684 and money is…

A: Depreciation: A depreciation is a non-cash expenses for the company. The depreciation expenses is…

Q: 3. An asset initially costs P55,000.00 and a salvage value P5,000.00 after 11 years. What is the…

A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…

Q: Company B recently acquired a small equipment that costs $30,000. The asset has a life of 10 years…

A: The depreciation reduces the value of assets with tear off and usage of assets with passage of time.

Q: A new barcode reading device has an inslated cost basis of $21,760 and an estimated service ide of…

A: Depreciation is a way to allocate the cost of an asset over the total useful life of an asset. Thus,…

Q: Angels Inc. purchases a piece of equipment for $65,000. The equipment has an expected useful life of…

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

Q: A machine costing P1,500,000.00 has an estimated economic life of 7 years. If the salvage value is…

A: The depreciation on fixed assets can be computed using various methods as straight line method,…

Q: What is the book value of equipment purchased 7 years ago for $21,952 if it is depreciated using the…

A: Equipment cost = $ 21,952 Life = 10 Years Sum of years digit = (10*11)/2…

Q: a. What is the amount of the annual depreciation? Do not round intermediate calculations. b. What is…

A: Requirement a: Compute the amount of depreciation.

Q: . Calculate the depreciation deduction and the unrecovered investment during each year of the

A: Depreciation is the expenses charged to profit and loss statement over the life of asset. it…

Q: The depreciation data for a property are as follows: Book Value = $330,330 Salvage value $80,970…

A: Sum of Years Digit Method: It implies a method that is used by a business to depreciate it's fixed…

Q: MTA construction bought an equipment for P60,000 with a salvage value of P10,000. The equipment is…

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

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: A company purchases

A: Depreciation is a measure of the wearing out, consumption or other loss of value of a depreciable…

Q: Calculate the 4th year annual depreciation charge value if the depreciation life is 6 years, cost of…

A: Depreciation: It is a gradual fall in the value of the asset due to its normal usage over a period…

Q: A tractor for over-the-road hauling is purchased for $75,000.00. It is expected to be of use to the…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. Fixed assets…

Q: A company bought a machine for BD 250,000 which has a useful life of 10 years and can be sold for…

A: Cost of machine is BD 250,000 Salvage value BD 50,000 Life of asset is 10 years

Q: Show in a table the value of depreciation each year, the accumulated depreciation and the book value…

A: Value of equipment = $50,000 Service life = 20 years Salvage cost = $4000 Carrying cost of equipment…

Q: an asset purchased for 100000. its estimated life for 5 years. find the salvage value if the total…

A: Sum of digits method is one of the most progressive depreciation methods in which depreciation is…

Q: A central air-conditioning system that costs $15,314 has a life of 14 years with a $1,302 SV. What…

A: Definition: Straight-line depreciation method: The depreciation method which assumes that the…

Q: An equipment has a first cost of Php20,000 and has a salvage value of Php2,000 after 10 years. What…

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: Calculate the depreciation life, if the depreciation charge value for the second year is 409, cost…

A: Under sum of years digits method of depreciation, depreciation is charged by taking sum of all…

Q: An asset is purchased for P500,000.00. The salvage value in 25 years is P100,000.00. What is the…

A: The question is related to Depreciation. The details are given as under Cost of Asset = P500000…

Q: An engineer bought an equipment for P500,000. Other expenses including installations amounted to…

A: Depreciation Expense = Cost - Salvage ValueUseful Life

Q: On July 1, 2021, Rodger Construction Co. bought a new concrete mixer. The mixer cost $54,000. The…

A: Depreciation is a non-cash expense that can applicable on fixed assets. Depreciation reduces the…

Q: A major equipment purchase is made by Metro Atlanta for $90,000. a. Metro Atlanta will use the…

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

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: A property is purchased at 1M and is expected to last 10 years with a salvage value of P100,000.…

A: Initial Cost = P 1,000,000 Salvage value = P100,000. Time Period = 10 Years

Q: Calculate the depreciation life (N) If annual depreciation charge is 750$, salvage value 2500$ and…

A: Depreciation is a bookkeeping strategy for allotting the expense of an unmistakable or actual…

Q: What is the depreciation of equipment purchased 5 years ago for $50,264 if it is depreciated using…

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

Q: A company bought a new conveyor belt for $ 182,000. If it depreciates on a straight-line basis at $…

A: The useful life of machine can be calculated with the help of straight line depreciation formula

Q: What is the depreciation deduction, using 200% DB method, after year 2 for an asset that costs…

A: Depreciation rate as per double declining balance method = (100/useful life)×2 = (100/6)×2 =…

Q: A company buys a piece of equipment for $50,000 with a salvage value of $5,000 and an estimated…

A: Depreciation :— It is the allocation of depreciable cost over the life of asset. Depreciation…

Q: What is the depreciation of equipment purchased at 10 years ago for $55,087 if it is depreciated…

A: Sum of the years digits (SYD) method In this method, depreciation rate for each year is calculate d…

Q: Using straight-line depreciation, what is the book value after 2 years for an asset costing $152700…

A: Annual depreciation = (Cost - Salvage value)/Useful life Accumulated depreciation = Annual…

Q: 1e. An asset is purchased for $90,000. It is expected to have a useful life of six years and a…

A: As per the MACRD - GDS depreciation table for 7 years, the depreciation rate applicable for 2nd year…

Q: construction equipment costs 700,000 pesos and will have a salvage value of 30% of its original cost…

A: Sum of useful years = 4+3+2+1 = 10

Q: A company purchases an asset of Php15,000 and plans to keep it for 20 years. If the salvage value is…

A: Under the sum of the years' digit method, each digit of the total life of an asset is added, and…

Q: You are an accountant for ABC Corp. Your purchasing department has procured products invoiced for…

A: The invoice terms 2/10 Net 30 mean that the buyer can take a 2% discount of the invoice amount if…

Question

A company buys a $73,580 asset. Salvage will be $3,689 at the end of 12 years useful life. Using straight line (SLN) depreciation, what is the total depreciation in year 5?

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

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introducing Depreciation Expense

VIEW

Step 2: Calculate the Depreciation Expenses for Year 5

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Your company is considering the purchase of a machine at a cost of P1,261,652, with an estimated salvage value of P207,760 and a projected useful life of 16 years. Determine the depreciation on the 5th year using the sum of years digits (SOYD) depreciation method. Write your final answer in two decimal places.
A firm purchases an asset for $50,000 and estimates that it will have a useful life of five years and a salvage value of $5,000. Under the straight-line method, the balance in the accumulated depreciation account, after the second year, will be???
An American manufacturing company has new equipment with a first cost of $ 25,000, an estimated salvage value of $ 1,500 and a recovery period of 9 years. Using the SYD method what is the total depreciation after the 4th year?
PLEASE ANSWER NEAT AND ASAP, ONLY ANSWER IF 100% CORRECT!
A manufacturing machine has a first cost of $50 thousand with a $22 thousand salvage value after 11 years. Find the book value at year 6 using simple Declining Balance (DB) Depreciation.
A tool is purchased for $500,000. The expected life is 25 years. The salvage value is $100,000. what is the second year’s depreciation using the double declining balance method.
An equipment has a total depreciation of P35,000 at the end of first year. If the First cost is P140,000 and the salvage value is P10,000. Calculate the uselife by double declining balance method of depreciation.
Ocak Uçan Yağlar Sanayi A.Ş. He bought 6 automatic filling machines and paid a total of 600,000 liras for them. The depreciation life of filling machines is 5 years. In this situation a) If the ordinary depreciation method is applied, what is the depreciation amount to be allocated according to the years? 4. What will be the book value at the end of the year? b) If the rapid depreciation method is applied, what is the depreciation amount to be allocated over the years? 4. What will be the book value at the end of the year?
Find the book value of office equipment purchased at a cost C at the end of the nth year if it is to be depreciated by the double declining-balance method over 10 years. (Assume a salvage value of $0. Round your answer to the nearest cent.) C = $100,000, n = 9 $=
An asset is purchased for $90,000. It is expected to have a useful life of six years and a salvage value of $18,000 at the end of its useful life. Find the BV at the end of the second year using the SL method.
A dump truck was bought for P750,000 three years ago. It will have a salvage value of P100,000 two years from now. Using the following methods, determine book value at the end of 3rd year, accrued depreciation at the end of 2nd year and annual depreciation cost at the end of 4th year. Show solutions for the asked years.
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?