A machine having a first cost of P60,000 will be retired at the end of 8 years. Depreciation cost is computed using a constant percentage of the declining book value. What is the total cost of depreciation in pesos, up to the time machine is retired if the annual rate of depreciation is 28.73%? 57,000 56,000 58,000 59,000

A machine having a first cost of P60,000 will be retired at the end of 8 years. Depreciation cost is computed using a constant percentage of the declining book value. What is the total cost of depreciation in pesos, up to the time machine is retired if the annual rate of depreciation is 28.73%? 57,000 56,000 58,000 59,000

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: What are the different methods to estimate inventory?

Q: JK Builders Co purchases a new excavator costing £40,000. Its expected useful life is ten years, at…

A: FORMULA OF DEPRECIATION UNDER STRAIGHT LINE METHOD = (COST OF ASSETS- RESIDUAL VALUE)/ESTIMATED LIFE…

Q: PS Builders Co purchases a new excavator costing £48,000. Its expected useful life is ten years, at…

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

Q: A CNC machine costs $220,000. A facility purchases one and plans to use it for 12 years, at which…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/12 years) x 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: A company is considering purchasing factory equipment that costs $400000 and is estimated to have no…

A: Ratio analysis is a fundamental tool that is used in finance and accounting to evaluate the…

Q: The data associated with operating and maintaining an asset are shown below. The con manager has…

A: AW is the annual worth of machine and annual worth of machine includes the cost of owning and cost…

Q: A new electric saw for cutting small pieces of lumber in a furniture manufacturing plant has a cost…

A: Cost = $4000 n = 10 years Salvage value = 0

Q: A company is planning to purchase a machine that will cost P240,000, have a six-year life, and be…

A: Net income = P 30000 n = 6 years Initial cost (I) = P 240000 Let r = Rate of return

Q: A manual press costs $16,000, and it will be scrapped after 10 years. Compute the depreciation and…

A: Depreciation: It refers to a gradual decrease in the fixed asset’s value because of obsolescence,…

Q: A certain machine costs P40,000 and has a life of 4 years and a salvage value of P5,000. The…

A: Total units produced in 4 years = 1800 units + 2200 units + 3000 units + 4000 units = 11000 units

Q: Close A truck costs $302,000 and is expected to be driven 115,000 miles during its five - year life.…

A: Depreciation under units - of - production method = Depreciation per mile × Actual activity…

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: 25 A machine costs R20 000. Depreciation will be written off at 20% per annum. Which one of the…

A: Given: Cost =R 20000 Depreciation rate =20%

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…

Question

A machine having a first cost of P60,000 will be retired at the end of 8 years.
Depreciation cost is computed using a constant percentage of the declining
book value. What is the total cost of depreciation in pesos, up to the time
machine is retired if the annual rate of depreciation is 28.73%?
57,000
56,000
58,000
59,000

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

Whole solution
K Company has purchased a new machine costing $27,000 and the machine is expected to reduce the operating expenses by $7,000 every year. The useful life of machine is 5 years and the machine is expected to have a zero-scrap! value at the end of its useful life. The company's required rate of return is 12%. Calculate the Net Present Value (NPV) of the machine. (Round intermediate calculations to 3 decimal places and final answer to the nearest dollar.)
A machine costs P840,222 with a scrap value of 10% of the original price at the end of its life of 8 years. What is the annual depreciation by sinking fund at 24%?
rap value. A machine is purchased for { 10,600. Depreciation is calculated at 8% for the first 3 reers and after that 10% per annum for the next seven years, depreciation being calculated on diminishing value. Find the value of the machine after a period of 10 years. A machine depreciates at the rate of 10% ner annum for the firot tuo 70/
KM Builders Co purchases a new excavator costing £50,000. Its expected useful life is ten years, at which point it is anticipated that the excavator will have a residual value of £18,000. If the straight-line method of depreciation is used, what is the carrying amount of the excavator at the end of 4 years? O A. £32,000 O B. £48,000 OC. £50,000 OD. £37,200
K Company has purchased a new machine costing $27,000 and the machine is expected to reduce the operating expenses by $7,000 every year. The useful life of machine is 5 years and the machine is expected to have a zero-scrap! value at the end of its useful life. The company's required rate of return is 12%. Calculate the Net Present Value (NPV) of the machine. (Round intermediate calculations to 3 decimal places and final answer to the nearest dollar.)
A machine costs $20,000. The machine can be disposed of after 2 years for $10,000. What is the ordinary gain using the following depreciation methods? 100% bonus depreciation. 5-year MACRS. 150% declining balance with N=5 years
K Company has purchased a new machine costing $27,000 and the machine is expected to reduce the operating expenses by $7,000 every year. The useful life of machine is 5 years and the machine is expected to have a zero-scrap value at the end of its useful life. The company's required rate of return is 12%. Calculate the Net Present Value (NPV) of the machine. (Round intermediate calculations to 3 decimal places and final answer to the nearest dollar.) -$1,765 $1765 -$464 $25,235
59. What is the depreciation factor per year of a hand tractor that is bought at P150, 000.00, if it has no more value at the end of the fifth year? a. 25,000 pesos/year b. 30,000 pesos/year c. 60,000 pesos/year d. 15,000 pesos/year
The first cost of a machine is $375,000 with a 7 years life. Annual interest rate is 20% and the expected annual maintenance cost of this machine is $15,000. For each case in the following, calculate the double declining balance depreciation payments if its salvage value is A) $85,000 B) $10,000 C) $35,575.
An asset costs $290,000 and is classified as a ten-year asset. What is the annual depreciation expense for the first three years under the straight-line and the modified accelerated cost recovery systems of depreciation? Be sure to apply the half-year convention to straight-line depreciation. Use Exhibit 9.4 to answer the question. Round your answers to the nearest dollar. Straight-line depreciation: Year Depreciation expense 1 $ 2 $ 3 $ Accelerated cost recovery system of depreciation: Year Depreciation expense 1 $ 2 $ 3 $
A photocopier bought at 5000 dollars was put to use as follows: First year 3000 hours Second year 4500 hours Third year 3900 hours. The trade in value of the photocopier is 1000 and it has a useful life that is estimated up yo 40000 hours. You are to calculate the depreciation at the end of the 3years and completing the book value and the remaining useful value of that period