bought a lorry for business at cost of RM17,000. The lorry is expected to last for 5 years and then be sold for scrap for RM2,000. The annual depreciation charged to profit and loss account of Maxim Sdn Bhd is as following: -Explain the depreciation method used by Maxim Sdn Bhd (show relevant workings).  -Explain the suitability of the depreciation method.   Year RM 1 5950 2

Q: Firm B purchased a machine at a price of 10,000 RMB. The life was estimated to be 5 years and the…

A: Double declining depreciation rate = (1/useful life) x 2            = (1/5) x 2            = 40%

Q: Coby’s Corp. purchased an equipment worth P 475,000 with a salvage value of P 70,000. Its useful…

A: Depreciable cost = P475,000 - P70,000 = P405,000

Q: A telephone company purchased a Communications Trainer worth P 250,000. Freight and insurance…

A: Depreciation :— It is decrease in the value of asset due to continuos use of asset.   Declining…

Q: A company purchased plant and machinery for one million, on 1 January 2008. The company uses…

A: Depreciation Expenses: The depreciation expenses are the actual amount of cost which are incurred at…

Q: Assume Bilinger Company uses the straight-line method of depreciation and has a long-lived asset…

A: Depreciation is the amount of expenses which is charged on fixed assets due to usage of the assets,…

Q: ABC company purchased a machine use to their business whose first cost is P 500,000 with an…

A: The fixed assets depreciation over the useful life. The depreciation of each period remains the same…

Q: At the beginning of the year Joeker Company brought machinery under a contract that required a down…

A: Interest is paid on the loan amount sanctioned. Interest amount is said to be the cost of the funds…

Q: Wrexder plc bought machinery for £154,000. The machinery has an estimated useful life of 4 years and…

A: Depreciation :— It is the decrease in the value of asset due to continuos use of asset.    Straight…

Q: BA Manufacturing Bhd. purchased an equipment for its factory on 1 January 2015. The cost of the…

A: Depreciation: A charge on the fixed asset that reduces the value of the asset is known as…

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A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: d) Oak Ltd purchased a machine for £40,000. At the end of Its Use the amount received on sale was…

A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…

Q: 7. An asset was purchased for P 150,000 and retired at the end of 15 years with a salvage value of P…

A: The annual cost of the assets includes the initial cost, operating cost, and maintenance cost of the…

Q: During the year ended 31 December Year 6, a motor vehicle originally purchased for RM5,500 in Year 2…

A: "Since you have posted a question with multiple sub parts we will solve first 3 sub parts for you.…

Q: A company bought a machine for BD 250,000 which has a useful life of 10 years and can be sold for…

A: Cost of machine is BD 250,000 Salvage value BD 50,000 Life of asset is 10 years

Q: How much is the yearly depreciation using the straight line method A 950,400 B 936,000 C 860,400…

A: Lets understand the basics. As per IAS 16 "property, plant and equipment" cost of asset not only…

Q: Equipment was purchased for RM157,000 and there was a cost of RM20,000 for building a foundation and…

A: It's simplest method of charging depreciation on an asset. Depreciation is charged on cost of asset.…

Q: A company has a building that costs 10 million TL, has a useful life of 10 years and has been in use…

A: depreciation is the wear and tear of the machine. it is the value deducted from the useful life of…

Q: A telephone company purchased a microwave radio equipment for P5,000,000. Freight and installation…

A: Installation charges = P5,000,000*2% Installation charges = P100,000

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: AA insert Construction Bhd just purchased some fixed assets that are classified as 5-year property…

A: The straight-line basis is a technique of computing depreciation and amortization, which is the…

Q: 1. An industrial plant purchase of assorted materials for production which cost in the amount of…

A: a. Computation of annual depreciation cost by straight line method.   =(Purchase cost + Handling and…

Q: 3. Morell Company acquired a property costing P300,000 during the beginning of the year. It has a…

A: Under Declining Balance Method, Depreciation Rate = 1 - (Residual Value / Cost)^(1 / Useful Life)

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A: Expenditures which increase the operating efficiency of the fixed assets should be capitalised with…

Q: Consider two hypothetical companies: A and B. At the beginning of year 1, each company buys an…

A: Annual Depreciation using straight line depreciation :— Under this method of depreciation,…

Q: A broadcasting corporation purchased equi pment worth P57, 000 and paid P1, 500 for freight and…

A: Answer a) Calculation of Annual Depreciation Cost Annual Depreciation Cost = (Purchase price +…

Q: 4. A broadcasting corporation purchased equipment worth P57, 000 and paid P1, 500 for freight and…

A: Depreciation means cost of tangible assets allocated over its useful life.  Depreciation amount is…

Q: The company "Lambda Delta Productive" acquired a building on 01.07.2021 paying 90.000 €.  The…

A: DEPRECIATION ACCOUNTING Depreciation means Loss in Value of Assets due to wear, Tear &…

Q: Consider two hypothetical companies: A and B. At the beginning of year 1, each company buys an…

A: Straight-line method depreciation meaning:- An asset is expensed over a long period of time when it…

Q: On April 1, Cyclone Company purchases a trencher for $288,000. The machine is expected to last five…

A: Under the straight line depreciation method, the charges of depreciation which are charged on the…

Q: Smitty Inc. wishes to use the revaluation model for this property: Before Revaluation • Building…

A: The question is based on the concept of revaluation of asset and its impact on calculation of…

Q: A non-current asset costing €2,000 was acquired at the start of year 1. It is being depreciated…

A: The accounting income i.e., the profit as per the income statement and the taxable income i.e., the…

Q: JJ Corp. purchased a new machine with an estimated useful life of 5 years with no salvage value of P…

A: Payback period is the period during which the initial investment in a project is recovered from its…

Q: Calculate the depreciation for both assets.

A: Asset - A corporation has a lot of resources, both financial and non-financial. However, an asset is…

Q: ABC’s property originally cost £300,000. After 10 years use it was revalued by £200,000. This…

A: Original Cost = 300000 Depreciation @ 2% 10 Years Depreciation = 300000*2%*10 = 60000

Q: DEPLORABLE BAD Co. acquired a machine on October 5, 20x1 for a total cost of ₱160,000. The machine…

A: The Sum of years digit method is a depreciation calculation method that is allowable by various tax…

Q: Keller Industries uses the straight-line depreciation method. One asset had been purchased for…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: A telco purchased a microwave radio equipment for P 6 million, freight and installation charges…

A: Under sum of years digits method,  Depreciation = (Remaining useful life/Sum of Years digits) *…

Q: Company A bought a building for OMR.73,000, which has the expected useful life of eight years and a…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…