An equipment costs P400,000 and has a life of 30,000 hrs at the end of which its salvage value is x pesos. In the first year, it was used for 6240 hrs. The book value at the end of the first year was P325,120. Find the value of x.

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: A lathe machine cost P300,000 with a salvage value of P15,000 is expected to last for 285000 hours…

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

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: 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: An asset costs R6 300,000 with a R900,000 salvage value at the end of its ten-year life. If annual…

A: Payback period is one of the simple method of capital budegting techniques and it is the time…

Q: n equipment costing 50,000 has a book value of 4,000 after 8yrs. The depreciation is computed by…

A: Depreciation is the decrease in value of assets over the period but the rate of depreciation is…

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.