Equipment acquired on January 5, 2013, at a cost of $918,240, has an estimated useful life of 15 years, has an estimated residual value of $75,840, and is depreciated by the straight-line method. What was the book value of the equipment on December 31, 2016, the end of the year?

Q: Mazaya Company purchased equipment on January 1, 2010, at a total invoice cost ofR.O. 400,000. The…

A: Annual depreciation = ( cost of the assets - residual value) / Life of the assets = (RO 400,000 - RO…

Q: A company purchased factory equipment on April 1, 2022 for $115300. It is estimated that the…

A: A depreciation is a non-cash expenses for the company. The depreciation expenses is charged because…

Q: On January 2, 2017, Union Co. purchased a machine for P264,000 and depreciated it by the…

A: Depreciation expense for first 3 years = P264,000 / 8 years = P33,000 Accumulated depreciation,…

Q: Antigua Company purchased a depreciable asset for $45,000 on October 1, 2015. The estimated salvage…

A: Here the data given is as follows: COST = $45,000 , LIFE = 6 YEARS, SALVAGE VALUE = $9,000,  Firstly…

Q: On January 1, 2016 Murgatroyd Co. purchased equipment for OMR 30,000, estimating a four-year useful…

A: Depreciation is the decrease in the value of an asset due to various reasons like wear and tear,…

Q: On January 1, 2014, Waterway Industries purchased equipment at a cost of $404000. The equipment was…

A: The depreciation expense is charged on the fixed assets as a reduction in the value of the fixed…

Q: Purchased a piece of equipment that cost $250,000 on January 1, 2011. The equipment will last 8…

A: Formula: SML Depreciation=Purchase Price of Asset- Salvage ValueLife of Asset Given:…

Q: On December 31, 2011, Lin Co. purchased an equipment with an estimated useful life of 10 years. The…

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

Q: On January 1, 2018, Shopee Company purchased an equipment with an estimated useful life of 8 years.…

A: Solution: Under sum of years digit method of depreciation, depreciation is expected to be higher in…

Q: On January 2, 2017, Union Co. purchased a machine for P264,000 and depreciated it by the…

A: The question is based on the concept of Depreciation Accounting.

Q: Crane Company purchased a depreciable asset for $680000 on April 1, 2018. The estimated salvage…

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

Q: Equipment acquired on January 2, 2013 at a cost of $305,500 has an estimated useful life of eight…

A: Depreciation is the reduction in the value of asset due to normal wear and tear.

Q: Steele Company purchased on January 1, 2017, a new machine for $2,100,000. The new machine has an…

A: Sum of the year’s digits method: this method determines the depreciation expense by multiplying the…

Q: A building that was purchased on December 31, 2003, for $2,500,000 was originally estimated to have…

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its…

Q: A plant asset was purchased for P19,000 on January 1, 2011 with a residual value and useful life of…

A: In case of change in accounting estimates, the impact should be recorded prospectively. The total…

Q: On January 1, 2018, Jane Company purchased an equipment with an estimated useful life of 8 years.…

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

Q: Bonita Industries purchased a depreciable asset for $591000 on April 1, 2018. The estimated salvage…

A: Lets understand the basics.Depreciation is a reduction in value of asset due to wear and tear,…

Q: A company purchased factory equipment on June 1, 2017, for $101800. It is estimated that the…

A: Depreciation per year as per SLM = Cost of equipment - salvage value / number of years of useful…

Q: On January 2, 2017, Union Co. purchased a machine for P264,000 and depreciated it by the…

A: Solution: Original annual depreciation using SLM = (Cost - Residual value) / useful life =…

Q: Equipment was acquired on January 1, 2013, at a cost of $75,000. The equipment was originally…

A: We have the following information: Equipment was acquired on January 1, 2013, at a cost of $75,000…

Q: Nanki Corporation purchased equipment on January 1, 2014, for $616,000. In 2014 and 2015, Nanki…

A: Depreciable cost is used to compute the depreciation, and it is calculated by subtracting its value…

Q: Jefferson Company purchased equipment on January 1, 2017. The equipment cost $60,000 and has an…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/8 years) x 2 = 25%

Q: January 1, 2014, Bonita Industries purchased equipment at a cost of $361000. The equipment was…

A: The depreciation expense refers to the reduction in the value of assets due to the use of that asset…

Q: Bramble Corp. purchased a depreciable asset for $ 726000 on April 1, 2018. The estimated salvage…

A: Solution: Annual depreciation on asset = (Cost - Salvage value) / Useful life = ($726,000 - $72,000)…

Q: (a) Faster Company purchased equipment in 2010 for $104,000 and estimated an $8,000 salvage value at…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: On January 1, 2018, KingKong Corp. purchased an equipment with an estimated useful life of 8 years.…

A: Salvage Value P2,000 Useful Life (in years) 8 Sum of the year (1+2+3+4+5+6+7+8) 36…

Q: Equipment acquired on January 3, 2007, at a cost of $504,000, has an estimated useful life of 12…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Equipment acquired on January 3, 2007, at a cost of $265,500, has an estimated useful life of eight…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: What depreciation would Murgatroyd record for the year 2018 on this equipment

A: Given information is: On January 1, 2016 Murgatroyd Co. purchased equipment for OMR 30,000,…

Q: Discarding an asset On October 31, 2018, Alternative Landscapes discarded equipment that had a cost…

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

Q: A company purchased factory equipment on June 1, 2022 for $120700. It is estimated that the…

A: Depreciation is the amount write off from fixed assets because of usage of assets or wear and tear…

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.