Complete solution need fast An equipment costs P480,000 and has a salvage value of 10% of its cost at the end of itseconomic life of 35,000 operating hours. In the first year, it was used for 4,000 hours. Inthe 2nd year, it was used for 5,000 hours. Determine its book value at the end of the 2ndyear using SLM.

In the above question we are given cost of equipment which is 480,000 salvage…

Answered: An equipment costs P480,000 and has a…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....

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A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.
Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?
An equipment costs P480,000 and has a salvage value of 10% of its cost at the end of its economic life of 35,000 operating hours. In the first year, it was used for 4,000 hours. In the 2nd year, it was used for 5000 hours. Determine its book value at the end of the 2nd year using Straight Line Method.
An equipment costs P400,000 and has a life of 30,000 hours. At the end of which its salvage value is "x" pesos. In the first year, it was used for 6,240 hours. The book value at the end of the first year was P325,120. Find the value of "x".
The price of a system of jockey pumps is P5,500,000. PLM decided to purchase this system and spent P215,500 for shipping and installation. The equipment will last for 10 years with a salvage value of 3% of its total cost. Determine the following: a. Yearly charge of depreciation using SL method. b. Depreciation charge on the 6 th year, and book value at the end of 8th year using SYD method.
At the end of its economic life of P45,000 operational hours, an item costing P500,000 has a salvage value of 12% of its original cost. It was utilized for P4000 hours in the first year. Using the straight line method, calculate the book value at the conclusion of the first year.
A lathe machine cost P300,000 with a salvage value of P15,000 is expected to last for 285000 hours in a period of 5 years. In the first year of service it was used for 8000 hours. Compute the book value of the machine at the end of the first year.
A certain equipment costs P7,000 has an economic life of “n” years and a salvage value of P350 at the end of “n” years. If the book value at the end of 4 years is equal to P2197.22, compute the economic life of the equipment using the SOYD Method.
An engineer bought an equipment for P 800,000. Other expenses, including installation, amounted to P 50,000. At the end of its estimated useful life of 10 years, the salvage value will be 10% of the first cost. Using the constant percentage method of depreciation, what is the book value after 5 years?
The cost of the printing equipment is P500,000 and the cost of handling and installation is P30,000. If the book value of the equipment at the end of the 3rd year is P242,000 and the life of the equipment is assumed to be 5 years, determine the salvage value of this equipment at the end of 5 years
A UV machine cost 550,000 pesos and has a salvage value of 10% of its cost at the end of its economic life of 45,000 hours. In the first year it was used for 5,000 hours. determine the book value at the end of the first year.

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An equipment costs P480,000 and has a salvage value of 10% of its cost at the end of its economic life of 35,000 operating hours. In the first year, it was used for 4,000 hours. In the 2nd year, it was used for 5,000 hours. Determine its book value at the end of the 2nd year using SLM.