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.

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.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 9MC: If an adjustment includes an entry to Accumulated Depreciation, which type of adjustment is it? A....

See similar textbooks

Similar questions

Which of the following methods applies a declining depreciation rate each period to an asset's constant value? a.Double-declining-balance methodb.Straight-line methodc.Sum-of-the-years'-digits methodd.Units-of-production method
Which of the following depreciation methods applies a uniform depreciation rate each period to an asset's carrying amount? a.Straight-lineb.Declining-balancec.Sum-of-the-years'-digitsd.Units-of-production
Which depreciation method would result in the same depreciation expense amount regardless of the partial period cor Select one: a. Sum-of-the-years'-digits b. Declining-balance c. Units-of-production d. Straight-line
Depreciation expense in the declining-balance method is calculated by the depreciation rate: Multiple Choice O Times book value at beginning of year Plus book value at end of year Divided by book value at beginning of year Times accumulated depreciation at year end None of the answer choices are correct.
Problem 1: 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 3d year, accrued depreciation at the end of 2nd year and annual depreciation cost at the end of 4 year. Show solutions for the asked years.
If an adjustment includes an entry to Accumulated Depreciation, which type of adjustment is it? A. accrual B. deferral C. estimate D. cull
Problem 1: A civil engineer bought a crane for erecting tall buildings. It was invoiced from Japan (Cost, Insurance, freight) to Manila ay P 60, 000. Brokerage, custom's, permits and etc. total P 120,000. At the end of 10 years, he expects to sell it for P 70,000. Tabulate and determine the depreciation charge during the 4th year and the book value at the end of 6th year(show solution at these years) using the following:
Under what depreciation method(s) is an asset’s bookvalue used to calculate depreciation each year?a. Straight-line methodb. Units-of-production methodc. Declining-balance methodd. Weighted-average-cost method
For each succeeding period, the declining balance (DB) method of depreciation recognizes an amount of depreciation expense that is: O declining-balance O units-of-production O straight-line O sum-of-years'-digits
End of year a. Determine the as Asset turnover
Which depreciation method ignores residual value when computing the depreciable base of an asset? a. sum-of-the-year's-digits b. double-declining-balance c. composite depreciation d. group depreciation
Residual value of an asset refers to the amount that it can fetch at the Oa. End of its life Ob. Beginning of its life OC.Middle of its life d. Opening date