Marfield Ltd. purchased equipment on 1 January 2020 at a cost of $40,000. The equipment is to be depreciated at 25% per annum using the reducing balance method. What will be the net book value of the equipment as of 31 December 2022?
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- 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?Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000
- Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual value was 500 and its expected service life was 5 years. Hathaway computes depreciation expense to the nearest whole month. Required: 1. Compute depredation expense (rounded to the nearest dollar) for 2019 and 2020 using the: a. straight-line method b. sum-of-the-years-digits method c. double-declining-balance method 2. Next Level Which method produces the highest book value at the end of 2020? 3. Next Level Which method produces the highest charge to income in 2020? 4. Next Level Over the life of the asset, which method produces the greatest amount of depreciation expense?On January 1, 2025, Pina Colada Corp. purchased equipment for $52560. The company is depreciating the equipment at the rate of $730 per month. The book value of the equipment at December 31, 2025 is: $52560. $8760. $0. $43800.
- On 1 July 20X7 Brown Ltd bought a machine for GHS 48,000. The machine was depreciated at 25% per annum on a straight-line basis until 30 June 20X9. On 1 July 20X9, the machine was revalued to GHS 30,000. Brown Ltd considers that its remaining useful life is three years. According to IAS 16 Property, Plant and Equipment, what should be the depreciation charge for the year ended 30 June 20Y0 and the balance on the revaluation surplus as at 30 June 20Y0? (Ignore any transfer of excess depreciation.) Depreciation charge Revaluation surplus A GHS 8,000 GHS 4,000 B GHS 8,000 GHS 6,000 C GHS 10,000 GHS 6,000 D GHS 10,000 GHS 4,000On July 1, 2022, Piscor Corporation purchased factory equipment for P450,000. Residual value was estimated to be P12,000. The equipment will be depreciated over ten years using the double-declining balance method. Counting the year of acquisition as one-half year, Piscor should report depreciation expense for 2023 on this equipment of:A. 90,000 B. 81,000 C. 78,840 D. 72,000An asset's book value is $35,000 on December 31, Year 7. The asset has been depreciated at an annual rate of $9,000 on the straight-line method. Assuming the asset is sold on December 31, Year 7 for $42,000, the company should record:
- Nevertire Ltd purchased a delivery van costing $52,000. It is expected to have a residual value of$12,000 at the end of its useful life of 4 years or 200,000 kilometres. Ignore GST.Required:a) Assume the van was purchased on 1 July 2019 and that the accounting period ends on 30 June.Calculate the depreciation expense for the year 2019–20 using each of the following depreciationmethods straight-line diminishing balance (depreciation rate has been calculated as 31%) units of production (assume the van was driven 78,000 kilometres during the financial year)b) Record the adjusting entries for the depreciation at 30 June 2021 using diminishing balancemethod. c) Show how the van would appear in the balance sheet prepared at the end of year 2 using Straightline method.A company purchased an equipment for P 536733 and paid 15556 for freight and delivery charges to the job site. The equipment has a normal life of 11 years with a trade-in value of P19006 against the purchase of a new equipment at the end of the life. What is the annual depreciation cost by means of sinking fund method. Assume interest 6% compounded annually. in 2 decimal values,ORCHID Company purchased machinery on January 1, 2020. It has an estimated useful life of four years and a residual value of ₱500,000. The machine is being depreciated using SYD Method. The depreciation applicable to this fixed asset for 2021 is ₱1,200,000. What was the carrying value of the machinery on December 31, 2021? ₱ 2,800,000 ₱ 1,700,000 ₱ 3,300,000 ₱ 1,800,000
