Machinery was purchased on January 1 for $65,660. The machinery has an estimated life of seven years and an estimated salvage value Double-declining-balance depreciation for the second year (rounded to the nearest dollar) would be: Oa. $13,400 Ob. $12,900 Oc. $12400 Od. $14,400

Q: Equipment with a cost of $156,668 has an estimated residual value of $8,790 and an estimated life of…

A: d. $31,388.44Explanation:To calculate depreciation using the straight-line method, you first need to…

Q: A plant asset cost $2,8800 year useful life. The annual depreciation expense recorded for the third…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: The cost of the building is OMR 20,000. The salvage value OMR 2,000. Estimated useful life of the…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: A motorized cultivator with a first cost of $28,000 and salvage value of 25% of the first cost is…

A: Cost=$28000Salvage value=25%Number of years=5yearsOperating cost=$43000

Q: The cost of an asset is $1,050,000, and its residual value is $280,000. Estimated useful life of the…

A: Formula: Depreciation rate = ( 100 / Useful life ) x 2

Q: Machinery was purchased on January 1 for $60,000. The machinery has an estimated life of 7 years and…

A: Answer -  Depreciation rate under straight line = 1/7 years =14.285%   Depreciation under double…

Q: A machine was purchased for $54,000 and it was estimated to have a $9,000 salvage value at the end…

A: Depreciation is considered an expense charge on the value of the asset. It can be calculated by…

Q: Machinery was purchased on January 1 for $52,920. The machinery has an estimated life of seven years…

A: Lets understand the basics. In double declining balance method, depreciation is calculated in…

Q: The cost of an asset is $1,090,000​, and its residual value is $240,000. Estimated useful life of…

A:

Q: Machinery was purchased on January 1 for $72,000. The machinery has an estimated life of 7 years and…

A: Depreciation for Year 1 = $72,000 * 2/7 = $20,571.43

Q: Lacey Company purchased a depreciable asset for $440,000. The estimated salvage value is $20,000,…

A: Depreciation is the decrease in value of assets due to its obsolete condition ,wear and tear…

Q: Slovac Company purchased a machine that has an estimated useful life of eight years for $7,500. Its…

A: Determine the depreciation rate applied each year.

Q: A machine with a cost of $67,400 has an estimated residual value of $4,408 and an estimated life of…

A: Double Declining balance method is a form of an accelerated depreciation method in which the asset…

Q: Machinery was purchased on January 1 for $53,900.00. The machinery has an estimated life of seven…

A: Answer: Double declining balance depreciation is a method of depreciation similar to declining…

Q: Machinery was purchased on January 1 for $86,240. The machinery has an estimated life of seven years…

A: Introduction:- Depreciation is a non cash expenses. Depreciation is charged on fixed asset over a…

Q: The cost of an asset is $1.200,000, and its residual value is $180,000. Essmated usetul ife of the…

A: Formula: Depreciation rate = ( 100 / Useful life years ) x 2

Q: A plant asset cost $288,000 and is estimated to have a $36,000 salvage value at the end of its year…

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

Q: A plant asset cost P96,000 and is estimated to have a P12,000 salvage value at the end of its 8-year…

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

Q: A machine with a cost of $55,000 has an estimated residual value of $3,852 and an estimated life of…

A: A double-declining balance method is an accelerated depreciation method Using this method, the value…

Q: A certain machine has a first cost of P 14,000, a ife of 8 years with a salvage value of P 10,000 at…

A: Depreciation means the expenses written off from value of fixed assets due to natural wear and tear…

Q: The cost basis is $81,000. The useful life is five years with no salvage value. Please provide a…

A: Straight-Line Depreciation Expense=Cost of Asset-Salvage ValueUseful Life Double-Declining…

Q: An assembly line conveyor system with a 5-year life is to be depreciated by the DDB method. The…

A: Double Declining Balance (DDB) method is a depreciation method under which the depreciation rate is…

Q: Colvin Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $100,000. The…

A: Calculate the year 1 depreciation for 3 months as follows: Year 1 depreciation = 2*(Book value of…

Q: Double-declining-balance depreciation for the second year would be (round

A: Refer Step 2 for working notes

Q: The cost of an asset is $1,170,000, and its residual value is $110,000. Estimated useful life of the…

A: Depreciation is nothing but an expense that reduces the value of a fixed asset. A fixed asset goes…

Q: An equipment was bought at 600,000 JD. The life time of the equipment is 10 years at the end of…

A: Purchase Cost of equipment = 600,000 JDSalvage Value = 10,000 JDLifetime = 10 years

Q: Equipment with a cost of $147,432 has an estimated residual value of $9,489 and an estimated life of…

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

Q: a. What was the depreciation for the first year? Round your intermediate calculations to 4 decimal…

A: Depreciation is a method which is used to reduce the book value of fixed assets over a period of…

Q: On March 1 of the current year. Dexter Cormpany acquired a machine costing P 650,000 with an…

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: The cost of a machine is 18,000 with a salvage value of RO 4270 at the end of its life of five…

A: The answer is option (b.) [RO 3375]  Refer step 2 for explanation

Q: ook value at the end of 14 years is P2,197.22. Using Sum of the Years Depreciation, determine the…

A: Depreciation: It is the reduction in the value of assets due to its continuous use and wear and…

Q: Computer equipment was acquired at the beginning of the year at a cost of $52,747 that has an…

A: In straight line method of depreciation, depreciation remains fixed throughout the useful life of…

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.