Mr. Jhonny bought a car worth P900,000 last January 1, 2000, and intend to sell it for P300,000 after its 10-year life. a) What amount had accumulated in the depreciation reserve at the end of 2003 if the declining balance method was used?
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- Mr. Jhonny bought a car worth P900,000 last January 1, 2000, and intend to sell it for P300,000after its 10-year life.a) What amount had accumulated in the depreciation reserve at the end of 2003 if thedeclining-balance method was used? (b) Using sum-of-the years digit method, determine the depreciation charge for 2004 and thebook value at the of 2004. (c) If, on June 30, 2003, he decided to sell the old car at book value and buy a new carfor P1,000,000, how much more money should Jhonny borrow to buy the new car if heused the straight-line method in computing the depreciation every 6 months and madeit a point to deposit the said amount in a bank that offers a 10 percent compoundedsemiannually?On January1, 2000, Luke bought a RAV4 worth P900,000 and intend to sell it for P300,000 after its 10-year life. a) What amount had accumulated in the depreciation reserve at the end of 2003 if the declining balance method wasused? (b) using sum-of-the years digit method, determine depreciation charge for 2004 and the book value at the of 2004. (c) If, on June 30, 2003, he decided to sell the old car at book value and buy a new car for P1,000,000, how much more money should Luke borrow to buy the new car if he used the straight-line method in computing thedepreciation every 6 months and made it a point to deposit the said amount in a bank that offers 10 percent compounded semiannually?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?
- Hampton Inc. purchased a machine to use in its business. The machine is estimated to have an economic life of 10 (ten) years before it becomes obsolete. The company expects to use the machine for 4 (four) years before it sells the machine to another company. Hampton uses the straight-line depreciation method. Question: How many years should Hampton depreciate this asset over? (4,7,10, or 14)32. On January 1, 2021, David's Dibs purchased a car for $35,000 and uses the straight-line depreciation method. The car has a useful life of four years and an estimated residual value of $3,000. Assume the car was totaled in an accident on December 31, 2022. Therefore, the car was retired. What amount of gain or loss should David's Dibs record on December 31, 2022? A. B. C. D. Gain, $5,000. Loss, $18,000. Loss, $19,000. Loss, $3,000.Please assist in solving the problem below. Thanks Bramble Corp. purchased a depreciable asset for $392000. The estimated salvage value is $26000, and the estimated useful life is 8 years. The double-declining balance method will be used for depreciation. What is the depreciation expense for the second year on this asset?
- A plant asset cost $95400 when it was purchased on January 1, 2014. It was depreciated by the straight-line method based on a 9-year life with no salvage value. On June 30, 2021, the asset was discarded with no cash proceeds. What gain or loss should be recognized on the retirement? No gain or loss. $21200 loss. $15900 loss. $10600 gain. A quick response will be appreciatedAndrea Kremer purchased a computer for $8,000 on July 1, 2020. She intends to depreciate it over 4 years using the double-declining- balance method. Salvage value is $1,000. Compute depreciation for 2021.In 2000, Paradise Condo Inc. bought a new apartment building that was rented out to families on June 21st, 2000. The purchase cost was 697,798 dollars and in addition it had to spend 13,622 dollars remodeling the space. Paradise Condo estimated that in 2030 the building would have a net salvage value of $100,000. Using the US Straight Line Depreciation Schedule, compute the value of depreciation recorded in the accounting books in the year 2000. (note: round your answer to the nearest cent and do not include spaces, currency signs, or commas) You Answered 20,380.67 Correct Answer 14,012.84 margin of error +/- 10
- You purchased in 2020 a new machine at $120,000 by trading it with an old machine. The old machine got sold at $40,000 and has a book value of $20,000. Your new machine belongs to Class 6, which IRS added to its MACRS depreciation schedules for personal property. Depreciation is calculated based on MACRS. a) Determine the Cost Basis. b) Calculate the depreciation amount throughout your full recovery period. c) Determine the depreciation amount in 2024 if you sell your machinery in February 2024 at $50,000.Swifty Corporation bought equipment on January 1, 2021. The equipment cost $351000 and had an expected salvage value of $59400. The life of the equipment was estimated to be 6 years. What is the depreciable cost of the equipment?Ayayai Corp. bought equipment on January 1, 2022. The equipment cost $470000 and had an expected salvage value of $70000. The life of the equipment was estimated to be 6 years. The depreciable cost of the equipment is $70000. $470000. $400000. $66667.