A building maintenance bought a pump set for 90,000. Installation cost amounted to P10,000. The pump set is to have a salvage value of P5,000 at the end of its 17 years life. Determine the depreciation charge during the 13th year and the book value at the end of 13 years by the (a) declining balance method, (b) double declinino balance method (c) sinking fund

A building maintenance bought a pump set for 90,000. Installation cost amounted to P10,000. The pump set is to have a salvage value of P5,000 at the end of its 17 years life. Determine the depreciation charge during the 13th year and the book value at the end of 13 years by the (a) declining balance method, (b) double declinino balance method (c) sinking fund

Name: A building maintenance bought a pump set for90,000. Installation cost
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: A building maintenance bought a pump set for90,000. Installation cost amounted to P10,000.The pump set is to have a salvage value ofP5,000 at the end of its 17 years life. Determinethe depreciation charge during the 13th yearand the book value at th

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....

See similar textbooks

Related questions

Q: A machine costs P 8,000 which last for 7 years with a salvage value at the end of its life of P 355.…

A: Depreciation is the decrease in the value of the asset due to wear and tear over the useful life of…

Q: A brand new car was bought for P750, 000 with an estimated useful life of 6 years with a salvage…

A: Depreciation is an expense to distribute the cost of a tangible asset over its useful life. The…

Q: ected salvage value of $4,500 at the end of the depreciable life. Find the yearly depreciation, Book…

A: Matheson equation refers to the method of computing the depreciation under which the annual expense…

Q: A company owns earth moving equipment that cost P100,000. After 8 years it will have estimated…

A: Depreciation: It is the allocation of cost of a tangible or physical asset over its useful life It…

Q: g equipment that cost P100,00. After 8 years it will have estimated salvage value of P20,000.…

A: Depreciation: It is the allocation of cost of a tangible or physical asset over its useful life It…

Q: nstruction company decided to purchase a concrete mixer truck for $85,000 with a trade-in of their…

A: The sinking fund technique is a technique for depreciating an asset while generating enough money to…

Q: An industrial plant bought a generator set for PHP 90,000. Other expenses including installation…

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

Q: The original cost for a distillation tower is $ 24,000 and the lifetime of the tower is estimated at…

A: CALCULATION: With formula:

Q: An industrial plant bought a generator set for 90,000. Other expenses including installation…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: A machine cost 75,000 and the salvage value is 15,000 after 15 years. Find, a) the depreciation by…

A: Cost of Machinery = 75,000 Salvage Value = 15,000 Note: Since, you have posted a question with…

Q: A company has purchased a bus for its officers for P 15,000,000. The expected life of the bus is 9…

A: Given that, Cost of the bus = P15000000 Life of bus (n) = 9 Years Salvage value of bus = 2.9M i =…

Q: asset was purchased at a cost of P7,000. It was estimated to have a useful life of ten years with a…

A: total depreciation one year before it was sold Assuming asset will be sold at end of it's useful…

Q: A cement mixer costs P50,000 with an estimated life of 6 years. Its salvage value is P2,500. Find…

A: Here, Cost of Cement Mixer (FC) is P50,000 Salvage Value (SV) is P2,500 Estimated Life is 6 years…

Q: A certain office equipment has a first cost of 29,788 and has a salvage value of 1,358 at the end of…

A: First Cost of Equipment= $29788 Salvage Value= $1358 Cost-Salvage Value= $29788-$1358…

Q: d its bo

A: (1) Depreciation under Straight Line method Depreciation = (Original cost of equipment - Salvage…

Q: An industrial plant bought a generator set for P90,000. Other expenses including installation…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: An equipment in a power station costs Ksh.1,560,000 and has a salvage value of Ksh.60,000 at the end…

A: Given information is: An equipment in a power station costs Ksh.1,560,000 and has a salvage value of…

Q: eciation charge during the 13th year and the book value at the end of 13 years by the (a) declining…

A: Total value of asset to be capitalised = P100,000 Salvage value = P5,000 Live of the Asset = 17Year…

Q: A machine costs P8,000, lasts 8 years, and has a salvage value of P400. Determine the depreciation…

A: The question is based on the concept of Depreciation Accounting. As per the Bartleby guidelines we…

Q: An industrial plant bought a generator set for 90,000. Other expenses including installation…

A: Depreciation Expenses: It is the portion of a fixed asset which has been considered as utilized…

Q: company has purchased a bus for its officers for P14,00,000. the expected life of the bus is 8…

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

Q: Determine the depreciation deduction and the resulting unrecovered investment during each year of…

A: Given: Surface amount PCB Placement value $18,00,000 Salvage value $90,000 Under MACRS Table, Rate…

Q: 3. An industrial plant bought a generator set for Php90,000. Other expenses including installation…

Q: XYZ Inc. has purchased a piece of equipment for $26,000. The equipment will be depreciated…

A: Formulas: Depreciation = (Cost of equipment - salvage value) / life

Concept explainers

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.

Topic Video

Question

A building maintenance bought a pump set for
90,000. Installation cost amounted to P10,000.
The pump set is to have a salvage value of
P5,000 at the end of its 17 years life. Determine
the depreciation charge during the 13th year
and the book value at the end of 13 years by
the (a) declining balance method, (b) double
declining balance method, (c) sinking fund
method at 12% and (d) SYD method.

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

Step 2

Step 3

Step 4

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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

A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.
Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.
Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
An industrial plant bought a generator set for P90,000. Other expenses including installation amounted to P10,000. The generator set is to have a life of 17 years with a salvage value at the end of life of P5,000. Determine the depreciation charge during the 13th year and the book value at the end of 13 years by the (a) declining balance method (b) SLM (c) sinking fund method if i=4% and (d) SYD method.
An equipment costing P220,000 has an estimated life of 14 years with a book value of P30,000 at the end of the period. Compute the depreciation charge and its book value after 10 years using: a. straight-line method b. sinking fund method c. declining balance method d. sum of year's digit method
A machine costs P8,000, lasts 8 years, and has a salvage value of P400. Determine the depreciation charge during the 4th year and the book value at the end of 4 years by (a) straight line method, (b) declining balance method, (c) DDB method, (d) SYD method, and (e) sinking fund method with interest at 12%.
a company has purchased a bus for its officers for P14,00,000. the expected life of the bus is 8 years. the salvage value of the bus at the end of its life is P1.2M. using the sinking fund method of depreciation, find the total depreciation at the end 3 years. use i = 8.2%
A company owns earth moving equipment that cost P100,000. After 8 years it will have estimated Salvage value of P20,000. Compute the annual depreciation cost and the book value at the end of 5 years (a) using SLD (b) Using sinking fund
An equipment in a power station costs Ksh.1,560,000 and has a salvage value of Ksh.60,000 at the end of 25 years .Determine the depreciated value of the equipment after 20 yrs using the following methods;(i) Straight line method(ii) Diminishing value method(iii) Sinking fund method at 5% compound interest annually.
A certain office equipment has a first cost of 29,788 and has a salvage value of 1,358 at the end of 14 years. Determine the depreciation at the end of the year 4 using sinking fund method at an interest of 0.101
A depreciable property costing P1,400,000 with original residual value of P80,000 after 10 years, had been revalued at a replacement cost of P1,680,000 with residual value of P20,000. The age of the asset is four years when it was revalued. What is the revaluation surplus? Please answer it complete using good accounting form. Thank you