An asset has a first cost of $17.000, an annual operating cost of $8000 and a salvage value of $5000 after 3 years. Calculate 20 43976 3265 14697 9326

Q: A depreciable property costing P2,600,000 with original scrap value of P200,000 after 15 years, ha…

A: DEPRECIATION: It is the reduction in the value of fixed assets due to its continuous use. It is…

Q: An asset costing Tk.38000 is estimated to have an economic life of 12 years with a net salvage value…

A: Depreciation expenses under Sum-of-year-digits method Depreciation Expenses = Remaining usful life…

Q: Equipment having a first cost of $158,000, a life of 10 years, and a salvage value of $23,000. What…

A: MACRS: It is a modified accelerated cost recovery system used in the United States  to calculate…

Q: Prepare a schedule of depreciation for a machine worth P350,000 (Price of P300,000 and installation…

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

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: Amachine whose cost is 80.000 nyals and s value as scrap is 5,000 ryals and its useful ife is 5…

A: Calculation of depreciation using the Double Declining Balance method: Year Depreciation…

Q: Consider the following data on an asset:Cost of the asset. I                              $…

A: (a)

Q: The cost of the building is OMR 20,000. The salvage value OMR 2,000. Estimated useful life of the…

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

Q: An asset has a first cost of $12,000, an annual operating cost of $3500 and a salvage value of $5000…

A: Given information: Initial cost=$12,000 Annual cost=$3500 Salvage value=$5000 Life=7 years Interest…

Q: Find the salvage value of an asset which has FC of P150 000 and economic life of 7 years. Using the…

A: Sum of years digits of useful life = 1 + 2 + 3 + 4 + 5 + 6 + 7 = 28   Remaining useful life on 5th…

Q: Assuming an asset w/o a salvage value, what must be its estimated useful life so that the…

A: Sum of the Years Digit Method: Depreciation is calculated using the sum of the years' digits (SYD),…

Q: The FC of asset is P710 000 while its salvage is P95 000. What is the depreciation charge during the…

A: Sum of digits  = 1+ 2 + 3 + 4 + 5 + 6 + 7 + 8+ 9 + 10 = 55 Third Year Depreciation  = ( Asset Value…

Q: 7. An asset was purchased for P 150,000 and retired at the end of 15 years with a salvage value of P…

A: The annual cost of the assets includes the initial cost, operating cost, and maintenance cost of the…

Q: Use full-year depreciation for the adjusting entries

A: Journal refers to the process of recording all the monetary transactions which shows all the credit…

Q: will be depreciated by the MACRS (GDS) straight-line method of depreciation. The effective income…

A: AE = First cost + PV of after-tax operating expense - PV of tax savings on depreciation…

Q: An equipment cost P67,000 and has a life of 10 years and salvage value of P53,500. Determine its…

A: Depreciation means the amount fixed assets written off due to normal wear and tear , normal usage…

Q: An asset has a first cost of $12,000, an annual operating cost of $3500 and a salvage value of $5000…

A: Given information: Initial cost=$12,000 Annual cost=$3500 Salvage value=$5000 Life=7 years Interest…

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 machine has a first cost of P36,000 and a salvage value ofP4,000 after 8 years. Find the annual…

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

Q: Asset value on Jan 01 is $ 500000, Salvage value after 10 years is 25000. Compute accumulated…

A: Formula: Depreciation rate = ( 100 / useful life years ) x 2

Q: Determine the asset value of a property at the end of scound year using. 1- Sum of the year digits…

A: The decrease in the monetary value of an asset over time due to use, wear and tear, or…

Q: Calculate the useful life of the equipment by sum of years' digit method First cost=P 1,400,000…

A: Depreciation amount=original amount- salvage amount                                   =P1400000 -…

Q: An asset costing $10,000 has the salvage values and operating cost shown below. Using 8%, when…

A: Calculate the net cash outflow as follows: Formulas:

Q: Find the book value of an asset that has an installed cost of $200,000, a recovery period of 5 years…

A: For calculation of book value, we need to find the total accumulated depreciation for elapsed 3…

Q: The cost of a certain asset is P1,017,242. Its life is 12 years and scrap value of P82,323. Find the…

A: Depreciation may be defined as the decrease in the value of assets due to continuous use and passage…

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: You are to create a year-by-year depreciation schedule for an asset that has a cost basis (B) of…

A: The salvage Value is $80,000 The price of the Equipment is $950,000 Project life is 10 years To…

Q: A machine costing P480,000 is estimated to have a salvage value of 10% of the first cost when…

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

Q: A piece of equipment cost $800 and a salvage value of $200. If it has a 10- your life the annual…

A: Depreciation is the process of reducing the value of the assets. It is a non-cash expense of the…

Q: A certain equipment has a first cost of P244891 and a salvage value of P17815 at the end of 15…

A: The depreciation cost at the end of 6 years using the sum of the years digit method is calculated…

Q: A machine costs Php 300,000 with a salvage value of Php 50,000 at the end of its life of 10 years.…

A: Machine cost (C) = Php 300000 Salvage value (S) = Php 50000 n = 10 years r = 6%

Q: An equipment costing P500,000.00 has a salvage value of P56,992.00 Determine its book value after…

A: Every fixed asset loses its value over a period. Depreciation is being recorded on the cost of…

Q: ment costs ₱3046114 with the estimated salvage value of ₱696261 at the end of 6 years. What is the…

A: Depreciation can be found by the sinking fund method also considering as the future value required…

Q: At the end of the useful life of a piece of equipment, the asset accounts for $45,000 worth of…

A: Worth of production = $45,000 Operating cost = $25,000 Salvage Value = $15,000

Q: A certain office equipment has a first cost of P 20,000 and a salvage value of P 1,000 at the end of…

A: Under the declining balance method, depreciation is calculated on reduced book value every year.…

Q: The price of equipment is available for purchase (15000) $ has an estimated useful life of 10 years…

A: solution given Price 15000 Useful life 10 years Salvage value 5000   Using…

Q: Cost of the asset, I Useful life, N Salvage value, S $130,000 5 years $5,000 Compute the annual…

A: Straight line depreciation is a method used to allocate the cost of a tangible asset equally over…

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: A depreciable property costing P2,600,000 with original scrap value of P200,000 after 15 years, had…

A: Here discuss about the details of the annual depreciation expenses which are incurred after the…

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: An asset cost $200,000.  It has a salvage value of $40,000.  It has a 10 year life.  What would…

A: There are different methods of deprecation that are commonly used like straight line depreciation…

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.