1. An equipment was purchased for P500,000.00 and the same has an economic life of 5 years, and with a salvage value ofP100,000.00. Construct a Depreciation Table. What was the Depreciation during the 5th year and the Book Value at the end of 5thyear? Explain your answer. (Úse Double Declining Balance Method).

Value 5,00,000 Years 5 Salvage value 1,00,000 Depreciation Double declining method…

Answered: An equipment was purchased for…

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

See similar textbooks

Similar questions

How would you calculate the depreciation of an asset using the sum of digits method if the asset has an initial cost of Rs. 10,000, a salvage value of Rs. 2,000, and an estimated useful life of 5 years?
An American manufacturing company has new equipment with a first cost of $ 25,000, an estimated salvage value of $ 1,500 and a recovery period of 9 years. Using the SYD method what is the total depreciation after the 4th year?
A manufacturing machine has a first cost of $50 thousand with a $22 thousand salvage value after 11 years. Find the book value at year 6 using simple Declining Balance (DB) Depreciation.
A tool is purchased for $500,000. The expected life is 25 years. The salvage value is $100,000. what is the second year’s depreciation using the double declining balance method.
How would you calculate the depreciation of an asset using the sum of digits method if the asset has an initial cost of Rs. 10,000, a salvage value of Rs. 2,000, and an estimated useful life of 5 years?
1. An equipment was purchased for P500,000.00 and the same lasted for 5 years with a salvage value of P100,000.00. Construct a Depreciation Table . What was the Depreciation during the 3rd year and the Book Value at the end of 3 years. Use Declining Balance Method.
Compute the difference on the depreciation using SLM and DBM after 4 years. Enter a positive value. An equipment bought at P132,726 and has a salvage value of 30,084 after 15 years.
Calculate the total cost, total depreciation, and annual depreciation (in $) for the following assets by using the straight-line method. (Round your answers to the nearest cent.) Cost ShippingCharges SetupCharges TotalCost SalvageValue EstimatedUseful Life(years) TotalDepreciation AnnualDepreciation $76,400 $1,500 $750 $ $4,500 11 $ $
On 1/1/2020 you have purchased an asset with for $50,000. You estimate the useful life to be 5 years and the salvage value to be $10,000. A) Using straight line depreciation, fill in the estimated depreciation schedule below. B) Now using accelerated depreciation (1.5X declining balance), fill in the estimated depreciation schedule below. C) On 12/31/2020 which method will report more net income, and by how much? Assume the tax rate is 40%. D) Assume that on 1/1/2021, you choose to sell the asset. You receive 40,000 in cash. Report the gain or loss under each depreciation method. (Circle one and Fill in the blank) Straight Line Depreciation: GAIN or LOSS Amount: 1.5X Accelerated Depreciation: GAIN or LOSS Amount:
Using the following data, solve for the depreciation and book value and prepare tabulation of book value using a) Straight Line Method, b) Sinking Fund Method, c) Declining Balance Method First cost = ₱10,000 Salvage Value = ₱500 Life of Property = 5 years Number of Years = 3 years For sinking fund method, assume 10% interest rate.
A man bought a machine costing $11000 with an useful life of 5 years of a salvage value of $1000. The rate of depreciation is 20%. Using the Declining Balance Method of Depreciation, give the complete solution and graph of the given problem.
Please do not give solution in image format thanku

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS