A television company purchased machinery for P140,000 on July 1, 1979. It is estimated it will have a useful life of 25 years. scrap value of P10,000, production of 50,000 units and working hours of 120,000. The company uses the machinery for 20,000 hours in 1979 and 25,000 hours in 1980. The machinery produces 46,000 units in 1979 and 55,000 units in 1980. Compute the depreciation using A. Output method B. Working hour

Q: Norton Construction Company purchased a cement mixer for $14,500. The mixer is expected to have a…

A: Depreciation:    It is the expense that is incurred due to the usage of machinery and other assets…

Q: An asset for drilling was purchased and place in service by a petroleum company. Its costs basis is…

A: Here in this question we are required to calculate depreciation amount for each years. Sum of years…

Q: heridan Company purchased a depreciable asset for $1140000. The estimated salvage value is $59000,…

A: The depreciation expense is charged on fixed assets as the reduction in value of assets with the…

Q: SportsWorld purchased equipment costing $10,000. The equipment has a residual value of $1,000, and…

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

Q: A sewing machine in a textile mill was purchased for $223,000, has an estimated residual of $22,000…

A: Solution: Depreciable cost=  Cost of machine - residual value = $223,000 - $22,000 = $201,000…

Q: A company purchased factory equipment for $540000. It is estimated that the equipment will have a…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/5 years) x 2 = 40%

Q: Computer equipment was acquired at the beginning of the year at a cost of $52,325.00. The computer…

A: The correct answer is $16,554.

Q: cost of $63,616 has an estimated residual value of $5,755 and an estimated life of 4 years or 16,212…

A: In  units-of-activity method, depreciation expense is calculated on the basis of usage of units .…

Q: Vaughn Manufacturing purchased a depreciable asset for $1190000. The estimated salvage value is…

A: The depreciation is the decrease in value of an asset with the usage each and every year.

Q: Equipment with a cost of $148,651 has an estimated residual value of $8,247 and an estimated life of…

A: Depreciation: Reduction in value of asset over a period of time due to obsolescence, wear and tear…

Q: The fixed assets have estimated useful lives as follows: Building - 31.5 years Computer Equipment -…

A: Depreciation represents the gradual decrease in the value of these assets and is recorded as an…

Q: A truck acquired at a cost of $430,000 has an estimated residual value of $25,300, has an estimated…

A: Introduction:- Depreciation is a non cash expenses. Depreciation is charged on fixed asset over a…

Q: Jim Company bought a machine for $37,560 with an estimated life of 5 years. The residual value of…

A: Under units of production depreciation methods, depreciation expense is calculated on the number of…

Q: A machine with a cost of $73,447.00 has an estimated residual value of $5,102.00 and an estimated…

A: Depreciation records the usage of a fixed asset over a period of time and allocates its cost to the…

Q: A machine that cost $84,000 has an estimated residual value of $21,000 and an estimated useful life…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: Hebron Company uses the units-of-activity method in computing depreciation. A new plant asset is…

A: Depreciation Expenses:-It is an expense which includes in the Income statement. In this, the total…

Q: X acquired a machine at a cost of P250,000. Scrap value is P20,000 and the estimated useful life was…

A: Depreciation expense is a type of expense that reduces the value of a fixed asset. The value of…

Q: mat is the amount of depreciation for the year 2003, during which the equipment 300 hours?

A:

Q: If 40,000 units were produced in 20X1 and 60,000 were produced in 20X2, what amount of accumulated…

A: The correct option is  C. $150,000

Q: At the beginning of last year, Bratworth Corporation purchased a piece of heavyequipment for…

A: Answer : D- $23,760 $24,300 Straight line depreciation is the predominant method of computing…

Q: Wildhorse Company purchased a truck for $40,000. The company expected the truck to have a useful…

A: Depreciation refers to the fall in the value of assets. There are various method to calculate…

Q: Timmy Thomas Company provided the following summary of its fixed assets: Assuming sum-of-the-years…

A: Assets: Assets are the resources of an organization used for the purpose of business operations.…

Q: On May 1, Crane Company purchased factory equipment for $763600. The asset's useful life in hours is…

A: The straight-line method is one of the most common techniques for allocating the cost of an asset…

Q: Mazaya company uses the units-of-activity method in computing depreciation. A new plant asset is…

A: Depreciation cost per unit = (Cost of plant assets - Estimated residual value) / Estimated units…

Q: JIG Company has an equipment costing $1,000,000 with an estimated residual value of $100,000 and an…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: A manufacturing firm purchased used equipment for $135,000. The original owners estimated that the…

A: Lets understand the basics. When entity have the amount of consideration paid for the purchase of…

Q: SportsWorld purchased equipment costing $10,000. The equipment has a residual value of $1,000, and…

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

Q: Northgate Coal Mining uses the units-of-production method of depreciation. A piece of heavy…

A: Depreciation:- It is the expenses for the company incurred due to normal wear and tear of the…

Q: A machine with a cost of $70,887.00 has an estimated residual value of $4,907.00 and an estimated…

A: Depreciation represents the reduction in the value of the asset over a useful life of the asset. It…

Q: On June 1, Aggie Company purchased equipment for $ 50,000. The equipment has a 7yr life with a…

A: Formulas:

Q: Company G purchased a school bus for $150,000. The bus has a useful life of 10 years or 1,000,000…

A: Depreciation expense rate = (Cost of bus - residual value) / Expected life of bus in miles =…

Q: The company acquired a machine on January 1 at an orgional cost of $70,000. The machine's estimated…

A: Solution 1) Depreciation according straight line method is as follows: Therefore the amount of…

Q: A machine that cost $100,000 has an estimated residual value of $10,000 and an estimated useful life…

A: Calculate the depreciation expense per machine hour.

Q: A machine that cost $594,000 has an estimated residual value of $27,000 and an estimated useful life…

A: Depreciation per hour = (Cost - estimated residual value) / estimated useful life =($594,000 -…

Q: A machine with a cost of $77,082.00 has an estimated residual value of $5,948.00 and an estimated…

A: Depreciation expense = [(Cost of machine - Residual Value) / Total Hours ] *  Machine Hours used

Q: A super printer was acquired at the beginning of the year at a cost of $75,000 that has an estimated…

A: Calculation of annual depriciation expenses for this year by using unit of production method are as…

Q: The pipe making machine costs $25,000 and has an expected scrap value of $5,000 at the end of its…

A: RB method is reducing balance method of depreciation, under which depreciation is being charged…

Q: Computer equipment was acquired at the beginning of the year at a cost of $55,699.00. The computer…

A: Depreciation under straight line method   =( Cost of assets- Residual value)/ useful life of assets…

Q: Dinkins Company purchased a truck that cost $66,000. The company expected to drive the truck 100,000…

A: Given, Cost = $66,000 Salvage value = $10,000 Estimated miles = 100,000 Depreciatione expense per…

Q: A machine with a cost of $67,523.00 has an estimated residual value of $4,597.00 and an estimated…

A: Given: It is to be depreciated by the units-of-production method.   Units-of-Production Method…

Q: ABC Company purchased a machine for $2 million that can produce 3,000,000 products over its useful…

A: Depreciation per unit produced = ($2,000,000 - $200,000) / 3,000,000 = $0.6 per unit

Q: Sophia Company purchased equipment costing $100,000. The equipment has a residual value of $20,000…

A: Depreciation expense per unit = (Cost of the assets - Residual value) / Total estimated useful life…

Q: Equipment with a cost of $148,767.00 has an estimated residual value of $8,167.00 and an estimated…

A: There are different types of depreciation methods In this question, it has to be depreciation using…

Q: Sabel Co. purchased assembly equipment for $608,000 on January 1, Year 1. The equipment is expected…

A: Depreciation is the demunition [reduction] in the value of an asset on account of…

Q: Concord Corporation purchased a depreciable asset for $ 553000. The estimated salvage value is $…

A: Depreciation refers to a decline in the value of a fixed asset over its useful life. The activity…

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.