Joseph Company purchased equipment on March 31, 2025 for P800,000. The company spent P30,000 for its freight and P50,000 for taxes and other expenses incidental to acquisition. The equipment can be sold for P40,000 after 10 years. It is estimated to produce 336,000 units of product X. The equipment production of product X for the first 5 years follow: Year Units of product X 2025 2026 2027 2028 2029 36,000 34,500 32,500 31,000 28,500 Compute for the accumulated depreciation as of December 31, 2027 using Sum of the Year's Digit method. Round off your answer to the nearest peso. Write the absolute value. Answer should be numeric.

Joseph Company purchased equipment on March 31, 2025 for P800,000. The company spent P30,000 for its freight and P50,000 for taxes and other expenses incidental to acquisition. The equipment can be sold for P40,000 after 10 years. It is estimated to produce 336,000 units of product X. The equipment production of product X for the first 5 years follow: Year Units of product X 2025 2026 2027 2028 2029 36,000 34,500 32,500 31,000 28,500 Compute for the accumulated depreciation as of December 31, 2027 using Sum of the Year's Digit method. Round off your answer to the nearest peso. Write the absolute value. Answer should be numeric.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 29CE

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13 Joseph Company purchased equipment on March 31, 2025 for P800,000. The company spent P30,000 for its freight and P50,000 for taxes and other expenses incidental to acquisition. The equipment can be sold for P40,000 after 10 years. It is estimated to produce 336,000 units of product X. The equipment production of product X for the first 5 years follow: Year Units of product X 2025 2026 2027 2028 2029 36,000 34,500 32,500 31,000 28,500 Compute for the accumulated depreciation as of December 31, 2027 using Sum of the Year's Digit method. Round off your answer to the nearest peso. Write the absolute value. Answer should be numeric.
1 Joseph Company purchased equipment on March 31, 2025 for P800,000. The company spent P30,000 for its freight and P50,000 for taxes and other expenses incidental to acquisition. The equipment can be sold for P40,000 after 10 years. It is estimated to produce 336,000 units of product X. The equipment production of product X for the first 5 years follow: Units of product X Year 36,000 34,500 32,500 31,000 28,500 Compute for the Book Value of equipment as of December 31, 2028 using straight-line method. 2025 2026 2027 2028 2029 Round off your answer to the nearest peso. Write the absolute value. Answer should be numeric.
es Oregon Forest Products will acquire new equipment that falls under the five-year MACRS category. The cost is $500,000. If the equipment is purchased, the following earnings before depreciation and taxes will be generated for the next six years. Use Table 12. 12. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Earnings before Depreciation $150,000 200,000 110,000 92,000 82,000 45,000 The firm is in a 25 percent tax bracket and has a 12 percent cost of capital. a. Calculate the net present value. (A negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole dollar amount.) Net present value b. Under the net present value method, should Oregon Forest Products purchase the equipment asset? Yos O No
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Winsey Company purchased equipment on January 2, 2019, for $700,000. The equip-ment has the following characteristics: Estimated service lifeLO 11.2 Estimated residual value20 years, 100,000 hours, 950,000 units of output $50,000During 2019 and 2020, the company used the machine for 4,500 and 5,500 hours, respectively, and produced 40,000 and 60,000 units, respectively.SHOW ME HOWRequired:Compute depreciation expense for 2019 and 2020 under each of the following methods: 1. straight-line method 2. activity method based on hours worked (round the depreciation rate per hour to 2 decimal places) 3. activity method based on units of output (round the depreciation rate per unit to 2 decimal places) 4. sum-of-the-years’-digits method 5. double-declining-balance method 6. 150%-declining-balance method 7. Next Level If Winsey used a service life of 16 years, 80,000 hours, or 750,000 units of output, what would be the effect on depreciation expense under the straight-line,…
On January 2, 2025, Ivanhoe Co. bought a trademark from Rice, Inc. for $1641000. An independent research company estimated that the remaining useful life of the trademark was 10 years. Its unamortized cost on Rice's books was $1969200. Ivanhoe expects that the trademark will produce 25% of its cash flows in year 1, 20% in year 2, 15% in year 3, and 10% in the remaining years. In Ivanhoe's 2025 income statement, what amount should be reported as amortization expense? Select answer from the options below - $410250 $318200 $273500 $164100
N1. Account
ABC Corp acquired an equipment with an invoice price of P2,500,000 with terms of 3/30, n/65. Installation cost is P50,000. Decommissioning cost is P200,000. Expected useful life is 10 years and effective rate was 12% How much is the initial cost of the equipment? 2,550,000 2,539,395 2,614,395 2,750,000
Oregon Forest Products will acquire new equipment that falls under the five-year MACRS category. The cost is $320,000. If the equipment is purchased, the following earnings before depreciation and taxes will be generated for the next six years. Use Table 12- 12. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Earnings before Depreciation $ 83,000 120,000 85,000 52,000 46,000 29,000 The firm is in a 25 percent tax bracket and has a 8 percent cost of capital. a. Calculate the net present value. (A negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole dollar amount.) Answer is complete but not entirely correct. Net present value $ 7,370.00 X b. Under the net present value method, should Oregon Forest Products purchase the equipment asset? Yes x No
The Equipment owned at the beginning of 2022 had been purchased as follows: Acquisition Acquisition year cost 2018 2019 2020 100 000 kr 55 000 kr 69 000 kr During the current year, the purchase of Equipment has been made with SEK 205,000 The estimated useful life (economic life) of all machines and equipment is 10 years. The company is entitled to accounting depreciation. Calculate and post the depreciation for the year according to plan.
On October 1, 2022, Vertical Company purchased a machine from a supplier which trade discount of 10%. An additional 4% cash discount if the account is within 30 days form the date of invoice. The machinery will be used for 6 years. Information related to this acquisition were as follows: List price of the machine acquired P4,000,000 Freight, unloading, and delivery charges for machinery acquired 110,000 Custom duties and other charges for machinery acquired 480,000 Allowances and hotel accommodation paid to foreign technicians during installation and test run of machine 600,000 Cost of training for personnel who will use the machine 230,000 How much is the cost of the machine?
Dettol Limited bought a machinery of Sh. 25 million The Machinery is expected to package 50 million 100 ml hand sanitizers during its life time and has a salvage value of Sh. 2.5 million. For the ten years, the schedule of actual production is as follows; Year 1 2 3 4 5 6 7 8 9 10 Total Units produced “million” 7.9 7.2 6.6 5.5 4.8 4.0 3.7 3.6 3.5 3.2 50 Required (i) Calculate the depreciation charge per 100 ml hand sanitizer. (ii) Prepare a depreciation schedule for this machinery using the units of production approach.