An eco-industrial park has a manufacturing plant which purchased a lathe machine for P57,500 seven years ago. A reserve for machine replacement has been provided using sum-of-the-years digit depreciation accounting its 20 years' life span. The plant manager has decided to replace the old machine with a newer model costing P95,000. The manager can sell the old machine for P17,500. What is the amount of the additional capital needed to purchase the new machine? What is the total depreciation at the end of 19th year? Round off to two decimal places in the final answer/s.

An eco-industrial park has a manufacturing plant which purchased a lathe machine for P57,500 seven years ago. A reserve for machine replacement has been provided using sum-of-the-years digit depreciation accounting its 20 years' life span. The plant manager has decided to replace the old machine with a newer model costing P95,000. The manager can sell the old machine for P17,500. What is the amount of the additional capital needed to purchase the new machine? What is the total depreciation at the end of 19th year? Round off to two decimal places in the final answer/s.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

An asset valued at 5,750 has a scrap value of 310 with an estimated life of 7 years. Make out a depreciation schedule. (Sum of years digits Method) What is the annual depreciation on the 5th year О А. 388.57 О в. 777.14 О с. 582.86 O D. 971.43
A building acquired at the beginning of the year at a cost of $84,800 has an estimated residual value of $2,500 and an estimated useful life of 4 years. Determine the following.(a) The double-declining-balance rate fill in the blank 1 of 2 %(b) The double-declining-balance depreciation for the first year fill in the blank 2 of 2$
A table was purchased for RO 1200 and the depreciation is computed at the rate of 15%. What is the book value at the end of second year by using Written down value method? a. RO 1020 b. RO 867 c. RO 180 d. RO 153
Double-Declining-Balance Depreciation A building acquired at the beginning of the year at a cost of $99,200 has an estimated residual value of $3,000 and an estimated useful life of four years. Determine the following. (a) The double-declining-balance rate % (b) The double-declining-balance depreciation for the first year
12 )
A depreciable property costing P1,000,000 with original residual value of P100,000 after 10 years, had been revalued at the beginning of 2020 at a replacement cost of P2,100,000. The age of the asset is four years when it was revalued. Prepare all entries at the time of revaluation and at the end of 2020 to record depreciation after revaluation.
Double-Declining-Balance Depreciation A building acquired at the beginning of the year at a cost of $98,800 has an estimated residual value of $6,900 and an estimated useful life of four years. Determine the following. a. The double-declining-balance rate % b. The double-declining-balance depreciation for the first year
On January 1, 2023, a machine was purchased for $105,000. The machine has an estimated salvage value of $6,420 and an estimated useful life of 5 years. The machine can operate for 106,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2023, 21,200 hours; 2024, 26,500 hours; 2025, 15,900 hours: 2026, 31,800 hours; and 2027, 10,600 hours. Compute the annual depreciation charges over the machine's life assuming a December 31 year-end for each of the following depreciation methods. (Round rate per hour to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 45,892.) 1. Straight-line Methodi $ 2. Activity Method Year 2023 2024 2025 $ 19,716 19,716 24,645 14,787
1. Determine the annual depreciation expense for each of the estimated 5 years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by (a) the straight-line method and (b) the double-declining-balance method. a. Straight-line method Additional Instruction Accumulated Depreciation, Year Depreciation Expense End of Year Book Value, End of Year 1 2 3 4 5 b. Double-declining-balance method Accumulated Depreciation, Year Depreciation Expense End of Year Book Value, End of Year 1 2 3 4 5 New lithographic equipment, acquired at a cost of $859,200 on March 1 at the beginning of a fiscal year, has an estimated useful life of 5 years and an estimated residual value of $96,660. The manager requested…
Straight-Line Depreciation A building acquired at the beginning of the year at a cost of $2,200,000 has an estimated residual value of $400,000 and an estimated useful life of 20 years. Determine the following: (a) The depreciable cost (b) The straight-line rate (c) The annual straight-line depreciation $ %
Which method of deprecation results in a lower amount for depreciation each year? ⒸA. Units of production B. Fixed instalment OC. Diminishing balance OD. Straight-line Previous page
Straight-Line Depreciation A building acquired at the beginning of the year at a cost of $134,200 has an estimated residual value of $5,200 and an estimated useful life of 10 years. Determine the following: (a) The depreciable cost (b) The straight-line rate % (c) The annual straight-line depreciation