An asset purchased 1 January 20x4, costing $10,000, with a 10-year useful life and no salvage value, was depreciated using thestraight-line method during its first three years. During 20x7, the total useful life was re-estimated to be 17 years. What is theamount of depreciation expense in 20x8?Multiple Choice$500$412

Step 1: To find the depreciation expense in 20x8, we first need to calculate the annual…

Answered: An asset purchased 1 January 20x4,…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question text Depreciation Choices and Outcome.Mulligan Co. purchased a new machine on January 1. The following information pertains to the purchase: Life of asset 5 years Salvage value $3,000 Purchase price 18,000 Sales tax 1,000 Freight cost 800 Electrical set-up 700 Custom programming 500 Estimated annual labor savings 3,500 Additional revenue generated 8,000 a. Determine the capitalized cost of the new machine$Answerb. Compute annual depreciation, accumulated depreciation and the machine's book value for the first three year assuming:i. Straight-line depreciationii. Double-declining-balance method Straight-Line Depreciation Double-Declining Balance DepreciationExpense AccumulatedDepreciation Book Value atYear-end DepreciationExpense AccumulatedDepreciation Book Value atYear-End Year 1 Year 2 Year 3 c. Assume the machine is sold for $8,000 at the end of the third year after depreciation…
Q: Calculate the rate of depreciation and depreciation using the straight-line method. ABC purchased truck on January1, 2020 for Rs=26,000, Expected residual value, Rs= 2,000, Estimated useful life= 5 years. XYZ purchased a plane January1, 2020 for Rs1,000,000, Expected residual value, Rs= 50,000, Estimated useful life= 5 years.
Complete using the Method a Asset Sewing Machine Units of of depreciation ( Round to OF Cent When necissary) Cost $10,200 $1,700 production nearest tenth Salvage Value units of Depreciation. Useful Life per unit 170,000 Grams
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Machinery on 01/1/23 = $ 100000 Salvage value @ 10 years = $ 10000 Book value after 6 years using Straight method depreciation.
A truck acquired at a cost of $60,000 has an estimated residual value of $2,000, has an estimated useful life of 200,000 miles, and was driven 15,000 miles during the year. Determine the following. If required, round your answer for the depreciation rate to 2 decimal places. Line Item Description Amount (a) The depreciable cost $fill in the blank 1 (b) The depreciation rate $fill in the blank 2 per mile (c) The units-of-activity depreciation for the year $fill in the blank 3
1. SYDM: A property that is book-depreciated over a 10-year period by the Sum of Years Digit Method has $9,745.45 depreciation charge and $37,109.09 book value on the 3rd year. Determine the assumed salvage value of the property. 2. SYDM: A property that is book-depreciated over a 10-year period by the Sum of Years Digit Method has $7,309.09 depreciation charge and $21,272.73 book value on the 5th year. Determine the assumed salvage value of the property.
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salvage An asset was purchased for $310000. It had an estimated years of use, the estimated salvage value is revised depreciation, depreciation expense in Year 6 would be to $43000 value of $50000 but the estimated and an estimated useful life is unchanged. useful life of 10 years. After 5 straight-line Assuming
a company purchased equipment in 1/4/2022 for 110,000 with six years estimation life with 10,000 salvage value, in 31/12/2023 sold the equipment for 80,000. journalize the entry in 31/12/2023
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