Gene’s business bought a machine for £72,000 on 1 January 2000 and another one for £96,000 on 1st July 2000. Depreciation is charged at 10% per annum straight line and calculated on a monthly basis. What is the total depreciation charge for the two machines for the year ended 31 December 2000? A £6,000 B £8,400 C £12,000 D £16,800

Gene’s business bought a machine for £72,000 on 1 January 2000 and another one for £96,000 on 1st July 2000. Depreciation is charged at 10% per annum straight line and calculated on a monthly basis. What is the total depreciation charge for the two machines for the year ended 31 December 2000? A £6,000 B £8,400 C £12,000 D £16,800

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Benenson Company bought some equipment on a contract entailing a €200,000 cash down payment and an…

A: Journal entry means the book of original entry where the first time transaction is recorded. After…

Q: A company provides each of its directors with a car. It has purchased these at £35,000 each. After 4…

A: Depreciation is the amount of expense which shows the decrease in the value of asset over time by…

Q: Depreciation and Rate of Return Burrell Company purchased a machine for $31,000 on January 2, 2019.…

A: The deprecation under straight line method is calculated as:= (Cost of the asset - Residual Method)…

Q: A company which uses the revaluation model for its PPE bought a building on 1 January 2014 for…

A: In the given question, we need to compute the revaluation loss that would affect the statement of…

Q: Cambodian Import Company purchased a depreciable asset for $160,000 on April 1, 2014. The estimated…

A: Depreciation under straight line method is: = (Original cost - Residual value) ÷ Useful life…

Q: A company which uses the revaluation model for its PPE bought a building on 1 January 2014 for £10m.…

A: The question asked to find the correct answer from the available options. Other comprehensive…

Q: Rivera Company purchased a tooling machine on January 3, 2015 for €500,000. The machine was being…

A: The change in the estimates over which the depreciation is computed is called a change in accounting…

Q: B Ltd leased equipment over four years making yearly payments of £15,000 in arrears. If annual…

A: Given:Annual payment (A) = £15,000Annual interest rate (r) = 8%License fees (L) = €8,000Payment…

Q: During 2018, Starbucks purchased fixed assets costing approXximately $1.8 billion. Assume that the…

A: Book value of the asset at the end of the period is the value after depreciation. Depreciation is…

Q: Wanda sold an asset for £10,000. The original cost was £23,000. The asset, which had an estimated…

A: The profit or loss from the disposal of the asset represents the difference between sale amount of…

Q: I want to answer this question

A: Step 1: Introduction to the Cost of an AssetThe cost of an asset means the amount paid to acquire a…

Q: A company which uses the revaluation model for its PPE bought a building on 1 January 2014 for…

A: According to the provisions of IAS 36 'Impairment of Assets', whenever the carrying amount of an…

Q: On 1 January 2020 a company purchased some plant. The invoice showed Cost of plant £61,000…

A: Capitalised cost of the asset means all costs related to purchase of asset along with all costs…

Q: A company which uses the revaluation model for its PPE bought a building on 1 January 2014 for…

A: Revaluation loss is the difference between the carrying amount of the asset and the revalued amount…

Q: Alpha Corporation owns machinery that costs Tk 10,50,000 when purchased on March 1, 2014.…

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

Q: On 1 January 2021, Tymba plc has a building with a carrying value of £500,000 which was purchased on…

A: As per IAS 16, Property, Plant and Equipment Amount that can be transferred from revaluation…

Q: Give me answer this question

A: The cost of an asset after depreciation on written down basis is known as "written down value of…

Q: sed a motor vehicle on 1 January 2014 for £24,000. It had an expected useful life of 5 years and…

A: Depreciation is a method of accounting that allocates the cost of a tangible or physical asset over…

Q: Z Limited purchases an asset for $50,000 from CashCrow Company on 1 January 2015 for cash. Z Ltd…

A: Total cost of the machine = Purchase price + Delivery and installation costs = $50,000 +$60000 =…

Q: On 31 December 2017, Snow Lake Pty Ltd purchased computers on credit for $60,000 plus GST. It has an…

A: Depreciation :— The decreasing value of Assets due to Wear, Tear & Obsolescence. Depreciation…

Question

Gene’s business bought a machine for £72,000 on 1 January 2000 and another one for

£96,000 on 1st July 2000. Depreciation is charged at 10% per annum straight line and

calculated on a monthly basis.

What is the total depreciation charge for the two machines for the year ended 31

December 2000?

A £6,000

B £8,400

C £12,000

D £16,800

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Lokton plc has a piece of equipment which it bought on 1 January 2014 for £1,000,000. The equipment has been depreciated annually at a rate of 10% on cost (with a zero disposal value assumed at the end of its useful life). At the year-end on 30 December 2020, the fair value of the equipment was £320,000. The value in use of this asset is estimated at £280,000. The current costs to sell the equipment amount to £50,000. What is the impairment loss? Select one: O a. £20,000 O b. £0 O c. £2,000 d. £80,000 e. £120,000 f. £251,441 g. £198,297
Lokton plc has a piece of equipment which it bought on 1 January 2014 for £1,000,000. The equipment has been depreciated annually at a rate of 10% on cost (with a zero disposal value assumed at the end of its useful life). At the year-end on 30 December 2020, the fair value of the equipment was £320,000. The value in use of this asset is estimated at £280,000. The current costs to sell the equipment amount to £50,000. What is the impairment loss? Select one: a. £0 b. £80,000 c. £198,297 d. £2,000 e. £20,000 f. £251,441 g. £120,000
Q4. Metropol Ltd. acquired a machinery for Rs. 5,00,000 on 1St April 2009. Rs. 40,000 were given as wages for its installation. A similar machine was available in the market at Rs. 4,00,000. Depreciation was to be charged at 20% p.a. on SLM basis. On 1st April, 2011 a modification was made to machinery to improve its technical efficiency at a cost of Rs. 50,000 which it was considered would extend the useful life by two years. At the same time, the machine was painted at cost of Rs. 10,000 so that it looks new. Routine machine maintenance during the year ending 31St March 2012 is Rs.7,500. Show for the year ending 31St March 2012: i. Machine Account ii. Provision for Depreciation iii. Relevant portions of P&L Account showing revenue charge relating to machine account. iv. Working note should form part of Solution
please solve all steps
Ace Company buys a machine on April 1, Year One, for $50,000 in cash. It has a residual value of $10,000 and an expected useful life of ten years. The straight-line method and the half-year convention are applied. The asset is sold on September 1, Year Three, for $39,900. What loss should be reported on this sale? a. $100 loss b. $850 loss c. $1,767 loss d. $2,100 loss
Alfredo Company purchased a new 3-D printer for $90,000. This printer is expected to last for ten years, at which time, Alfredo believes it will be able to sell the printer for $15,000. Calculate yearly depreciation using the double-declining-balance method. PLEASE NOTE: All whole dollar amounts will be with "$" and commas as needed (i.e. $12,345). Year 1 Depreciation: ____________________ Year 2 Depreciation: ____________________ Year 3 Depreciation: ____________________ Year 4 Depreciation: ____________________ Year 5 Depreciation: ____________________ Year 6 Depreciation: ____________________ Year 7 Depreciation: ____________________ Year 8 Depreciation: ____________________ Year 9 Depreciation: ____________________ Year 10 Depreciation: ___________________
Alfredo Company purchased a new 3-D printer for $90,000. This printer is expected to last for ten years, at which time, Alfredo believes it will be able to sell the printer for $15,000. Calculate yearly depreciation using the double-declining-balance method. PLEASE NOTE: All whole dollar amounts will be with "$" and commas as needed (i.e. $12,345). Year 1 Depreciation: _________________ Year 2 Depreciation: _________________ Year 3 Depreciation: _________________ Year 4 Depreciation: _________________ Year 5 Depreciation: _________________ Year 6 Depreciation: _________________ Year 7 Depreciation: _________________ Year 8 Depreciation: _________________ Year 9 Depreciation: _________________ Year 10 Depreciation: _________________
XYZ Company purchases a new machine for $50,000 with a useful life of 5 years and no salvage value. The company uses straight-line depreciation. Calculate the annual depreciation expense for the machine.
Baltika plc purchased a van on 1 November 2020 for a total cost of £28,000 by paying £21,500 cash and trading in an old van. The old van had cost £25,000 and the related accumulated depreciation was £17,500. What is the profit/loss on disposal of the old van in Baltika plc's statement of profit or loss for the year ended 31 December 2020?