a company purchases an asset for 20000 and plans to keep it for 8 years. what is the salvage value in the 8th year if the book value during the 3rd year is 8333.33? use the sum of the years digit derpreciation

a company purchases an asset for 20000 and plans to keep it for 8 years. what is the salvage value in the 8th year if the book value during the 3rd year is 8333.33? use the sum of the years digit derpreciation

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: An asset with a purchase price of $486,966 falls in the 5-year MACRS asset class. The asset will be…

A: The book value is calculated as the cumulative depreciation over 3 years multiplied by asset cost

Q: If the first cost of the item is P3000, its useful life is 6 years and a salvage value of P500. What…

A: A fixed asset is a non-current that requires huge investment capital and is expected to be in…

Q: In 2012, Ideal Time purchased equipment with a 10 year life valued at $547,000. To install and ship…

A: Total cost of the Equipment = purchased cost + install and ship cost = 547000+10900+7550 = P565,450

Q: Bob's BLT's purchases a sandwich making machine for $5,929 at the beginning of Year 1. He expects…

A: Depreciation expense :— It is the allocation of depreciable cost of an asset over the estimated…

Q: A certain machine has a first cost of 30,000; annual costs of 6,000; a salvage value of 4,000 and a…

A: Depreciation: It is the reduction in the value of the asset over the period. This includes normal…

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: If a computer is bought by a company for $100 and is depreciated using the 3-year GDS recovery…

A: Depreciation: Depreciation is the concept applied on reporting of fall in original value of fixed…

Q: If Ricky Padilla uses the straight-line method to depreciate an asset, depreciation expense will be…

A: First we will calculate the book value of machinery using straight line method - Let the book value…

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 company buys an industrial lathe for $95,000. It has a useful life of 20 years and a salvage value…

A: Depreciation It is important for the entity to calculate the Depreciation cost to know the actual…

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: What A company buys a new machine on July 1, 2022, and it is put into use immediately. Purchase…

A: The objective of the question is to calculate the annual depreciation using two different methods:…

Q: A new CNC machine is purchased for $40,000. The salvage value of the CNC machine is expected to be…

A: The modified accelerated rate of depreciation(MACRS) is the rate of depreciation used for…

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: g equipment that cost P100,00. After 8 years it will have estimated salvage value of P20,000.…

A: Depreciation: It is the allocation of cost of a tangible or physical asset over its useful life It…

Q: Lyceum of Aparri purchased an asset for P 12,555.00 and plans to keep it for 19 years. If the…

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

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: 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: 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 price of the new machine purchased by ABC company was P50000 and expected to last for 14 years…

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

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: An asset costs $150,000 and has a salvage value of $15,000 after 10 years. What is the depreciation…

A: Business organizations are required to charge the depreciation expense in their books of accounts so…

Q: 2. Equipment bought for P 87,000.00 is expected to last for 24 years. If the scrap value after 20…

A: You have posted multiple questions. We will solve only the first question for you. The depreciation…

Q: A crane rental company has acquired a new heavy-duty crane for $260,000. The company calculates…

A: Depreciation is a non-cash expense which is incurred due to a continuous use of fixed asset.…

Q: The 1st cost of a certain machine is P900,000.00 . After 8 years, it will have a salvage value of P…

A: It has been provided: First cost = P900,000 Salvage value after 8 years = P180,000 Time period = 3…

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: A machinery worth BD20,000 has a lifetime of 10 year and a salvage value of Rs. 1500. Calculate the…

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: A certain machine has a first cost of 30,000; annual costs of 6,000; a salvage value of 4,000 and a…

A: Introduction: Depreciation is the process of allocating the asset's value over its expected or…

Q: An asset costs $19,000. At a depreciation rate of 20 percent, calculate its book value using…

A: Depreciation is considered as an expense that is charged on the value of the Asset. It can be…

Q: An equipment costing 5, 000, 000.00 can be sold for 1, 000, 000.00 after it’s useful life of five…

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

Q: A classical straight-line depreciation of a $100,000 asset takes place over a 5-year warranty…

A: Salvage value: Salvage value can be defined as an estimated value of an asset that is left after…

Q: An equipment costing 5,000,000.00 can be sold for 1, 000, 000.00 after it’s useful life of five…

A: Depreciation represents the reduction in the value of asset over a period of time.

Q: A commercial company plans to buy the device for $ 20,000 and is expected to sell it for $ 8,000 in…

A: Formula: Straight line method depreciation = ( Asset cost - Salvage value ) / Useful life

Q: Mercury Drug purchased a Laboratory equipment for P 100,000 and plans to keep it for 15 years. If…

A: Depreciation is the allocation of cost of asset over the useful life of the asset. Several methods…

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

Question

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

VIEW

Step 2

VIEW

Step by step

Solved in 2 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

the cost of a certain asset is 500000. its life is 10 years with a scrap value of 50000.using the declining baance method find the total depreciation after 5 years
If the current value of a chemical plant is $ 800 thousand, its scrap value is $ 50 thousand, the service life is 8 years, the interest rate is 7%, the depreciation value and book value for each year,a) Calculate using the accumulated fund method.b) Show depreciation and book value changes by years on the chart.
George Company has the opportunity to purchase an asset that costs $40,000. The asset is expected to increase net income by $10,000 per year. Depreciation expense will be $5,000 per year. Based on this information the payback period is: A) 4 years. B) 2.5 years. C) 2.67 years. D) 8 years.
Assume that an asset has a first cost of P94,158.00 and an expected salvage value of P15,613.00 after 12 years. Calculate the book value directly at the end of year 4.
1. A commercial company plans to buy the device for $ 20,000 and is expected to sell it for $ 8,000 in the future. The useful life of the device is estimated at 8 years. It is desirable to calculate the depreciation of each year and the book value of each year using any of the following methods: a) Linear b) Sum of year figures c) Trial balance
What is the value of an asset after 8 years of use if it depreciates from its original value of P105,000 to its salvage value of 3% in 12 years using SLM?
a) an asset is purchased for $200,000. The estimated life is 8 years and the salvage value is $20.000.assuming the item is depreciated via straight line method, find the book of the asset at the end of 5 years? b) If one-time amount of $500 is invested at an annual interest rate of 8% (compound annually), find its future worth at the end of 20 years?
A machine was bought P100,000 and the scrap value is P15,000 after 30years. Calculate its total depreciation at year 14 with 4% interest rate.Use Sinking Fund Method
5. A given item has a spelling price of $1,000. Its value depreciates at a rate of 12% per annum. What will be its selling price after 6 years? Tabulate the annual depreciation amounts and the book value of the equipment at the end of each year.
xyz company has equipment that cost 100000. after 8 years it will have a salvage value of 18000. using the double declining balance method find the depreciation charge in the 4th year
A machine was purchased for P100,000 and has a salvage value of P20,000. What is the book value on its 4th year if the economic life is 10 years? Use SYD Method.
A machine was purchased for 100,000 and has a salvage value of 20,000 what is the total depreciation on the 7th year if the economic life is 10 years? Assume i = 8% Use sinking fund method