An Equipment was purchased 5 years ago with a price of P150000 with a lifespan of 15 years with a scrap value of P15000. The company wants to upgrade with a newly improved equipment that cost P280000. The supplier accepted to trade the old equipment with a price of P95000. Determine the Sunk Cost by computing the depreciation with the straight-line method.

Q: Delaney Company is considering replacing equipment that originally cost $518,000 and that has…

A: Sunk cost refers to the cost or money which is already expended and irrecoverable in nature.

Q: Equipment with a cost of $305000 has an estimated salvage value of $21000 and an estimated life of 4…

A: DEPRECIATION EXPENSEDepreciation means gradual decrease in value of assets due to normal wear and…

Q: The company expects machine X to last five years and to have a residual value of $4,600 when it is…

A: Approach to solving the question: Let's assume the initial costs are as follows:Machine X initial…

Q: 3azelly, a moving company, has purchased a large new trucktractor for over-the-road use. It has,…

A: MACRS depreciation system is used under general depreciation system(GDS) and uses a declining…

Q: What amount should be capitalized as the cost of the new equipment?

A: As per the relevant IFRS "PPE", all the costs incurred by the Business Entity, to bring the Asset…

Q: Find the book value at the end of 4 years, assuming straight line depreciation. Select one: a. 2360…

A: Answer - Option A is correct.

Q: Atwood Industries is considering disposing of equipment with an original cost of $400,000 and…

A: Sunk cost is the cost which is already incurred  and cannot be recovered. It is irrelevant to…

Q: Vaughn Manufacturing purchased a depreciable asset for $1190000. The estimated salvage value is…

A: The depreciation is the decrease in value of an asset with the usage each and every year.

Q: Torikatsu Company purchased a machine for P 100,000; current accumulated depreciation totals P…

A: Sunk Costs are costs that are have already been incurred (i.e., Historical Cost). These costs does…

Q: A machine has an initial cost of P74,777.226 and a salvage value of P8,991.127 after 7 years. What…

A: Initial cost = P 74,777.226 Salvage value = P 8991.127 Life = 7 Years Annual depreciation = (Initial…

Q: Equipment with a cost of $95,550, an estimated residual value of $4,550, and an estimated life of 13…

A: Depreciation as per straight line method is given as under: = (Original cost - Salvage value) ÷…

Q: BBB Inc revalues an asset with a book value of $715,000 to its fair value of $750,000. The original…

A: Depreciation is the method of reducing the value of the historical cost of the asset by each passing…

Q: NUBD Co. had a machine with an original cost of P95,000 and an estimated salvage value of 5,000.  It…

A: Annual Depreciation on old machine = (Cost of the assets - Salvage value) / life of the assets =…

Q: Halcrow Yolles purchased equipment for new highway construction in Manitoba, Canada, costing…

A: depreciation is reducing the value of an asset it is an accounting convention that allows a company…

Q: Equipment with a cost of $73,316.00, an estimated residual value of $6,902.00, and an estimated life…

A: Annual depreciation = (cost - salvage value)/life of the assets = (73316-6902)/11 = $6037.64…

Q: Equipment costing $83000 with a salvage value of $15000 and an estimated life of 8 years has been…

A: Depreciation is the Accounting method by which the cost of a tangible asset is spread over the…

Q: A machine costing P45,000 is estimated to have a salvage value of P4,350 when retired at the end of…

A: Depreciation rate =  1- ( Salvage Value/Cost)1/n Where n is the number of years of useful life.

Q: A firm bought a machine for P56, 000. Other expenses including installation amounted to P4, 000. The…

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: A machine has an initial cost of P91,123.71 and a salvage value of P14,839.26 after 7 years. What is…

A: Total Depreciation under Straight Line Depreciation = Annual Depreciation x No. of years Annual…

Q: A machine has a cost basis of 1000000 TL and a salvage value of 80000 TL. Depreciation period is 8…

A: Depreciation Expense is reduction in the value of assets due to its use, wear or tear.Salvage value…

Q: he purchase price of a front vith its purchase, is $117,450. The life of the loader is 6 years, at…

A: The equipment is going to be decrease in value and with use of equipment annually the value of…

Q: 8) A machine costing P2,500 has an estimated useful life of 4 years with a scrap value of P500.…

A: Depreciation refers to the reduction in the value of asset due to its normal use and tear and wear.…

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: For the following machine, calculate depreciation using Double Diclining with a change to a fixed…

A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear.There are…

Q: Your company is considering the purchase of a secondhand scanning microscope at a cost of $10,500,…

A: Meaning of Depreciation Schedule Depreciation schedule is a table which contains all the details…

Q: Mazaya company uses the units-of-activity method in computing depreciation. A new plant asset is…

A: Depreciation cost per unit = (Cost of plant assets - Estimated residual value) / Estimated units…

Q: An equipment has an original cost and book value of 2,100,000 and 1,560,000 respectively. It has…

A: Sound value of an asset is the depreciated replacement cost of the asset. This value differs from…

Q: The pipe making machine costs $25,000 and has an expected scrap value of $5,000 at the end of its…

A: RB method is reducing balance method of depreciation, under which depreciation is being charged…

Q: A machine has an initial cost of P110,634.945 and a salvage value of P22,728.983 after 10 years.…

A: Depreciation per year = (Initial cost - Salvage value) / Useful life Depreciation per year =…

Q: A four-storey industrial building has a depreciated value of P890,000 at the start of 18th year and…

A: Current depreciated value = P890,000  After 17 years Salvage value =P50,000 Original Cost = To be…

Q: Given an asset which has an initial cost of $100,000, Useful life of 4 years and a salvage value of…

A: Straight line depreciation rate=100%Useful lifeDouble declining depreciation rate=Straight line…

Q: An asset was purchased for $257000. It had an estimated salvage value of $49000 and an estimated…

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

Q: A plant bought a new equipment for P220,000and used it for 10 years, the life span of the equipment.…

A: Depreciation is a method of reducing the capitalized cost of long-lived operating assets or plant…

Q: South Korea Inc. has an equipment costing P700,000 with an estimated salvage value of P70,000 and an…

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

Q: A brand new car was bought for P1. 75 million with an estimated useful life of 7 years. Prepare a…

A: Depreciation is the amount that is charged on the fixed asset by which the value of the asset…

Q: You are an accountant for ABC Corp. Your purchasing department has procured products invoiced for…

A: The invoice terms 2/10 Net 30 mean that the buyer can take a 2% discount of the invoice amount if…

Q: A machine costs $40,000 and had an accumulated depreciation of $30,000. It was traded in on a new…

A: The non-monetary exchange of an asset refers to a transaction where a company purchases a new asset…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.