Presented below is information related to Vaughn Manufacturing Corporation.AssetCostEstimated SalvageEstimated Life (in years)A$54,700$6,50010B33,2005,3009C36,8004,4009D18,2001,4007E23,9002,9006(a)Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round answer to 2decimal place, e.g. 4.83%.)(b)Composite rateeTextbook and MediaList of AccountsSave for Later%Attempts: 0 of 3 usedSubmit AnswerThe parts of this question must be completed in order. This part will be available when you complete the part above.(c)The parts of this question must be completed in order. This part will be available when you complete the part above.

Composite rate10.44%Explanation:In order to compute the depreciation rate under the composite…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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am. 134.
A truck acquired at a cost of $60,000 has an estimated residual value of $2,000, has an estimated useful life of 200,000 miles, and was driven 15,000 miles during the year. Determine the following. If required, round your answer for the depreciation rate to 2 decimal places. Line Item Description Amount (a) The depreciable cost $fill in the blank 1 (b) The depreciation rate $fill in the blank 2 per mile (c) The units-of-activity depreciation for the year $fill in the blank 3
For each of the following depreciable assets, determine the missing amount. Abbreviations for depreciation methods are SL for straight-line and DDB for double-declining-balance. Residual Service Life Depreciation Depreciation Asset Cost Value (Years) Method (Year 2) A $28,000 5 DDB $24,000 B 56,000 8 SL 5,300 C 81,000 6,000 SL 5,000 D 246,000 18,000 10 22,800 E 208,000 28,000 8 DDB
NOTE: Use must use 4 decimal places for all workings Round down to two decimal points for the final answer Q) The following information relating to an investment in PPE has been extracted from the books of Vandelay Industries Ltd: Total purchase price $59,993; salvage value $1,034 at the end of year-3. net sales revenue (relating to the equipment): Year-1 $34,000; Year-2 $28,000 and Year-3 $23,000; applicable tax rate is 30%; and the required rate of return is 12%. If the depreciation rate is 25% under the straight-line method, calculate the tax amount in the third year relating to the sale of the equipment only.
Q2) A machine was purchased for a sum of 393,000$ having useful life of 13 years. How to account the level of depreciation under Sum of years Digits Method? Note: Salvage Value =39,000$. Brief the final results in short a table and highlighting of (Depreciation Expense and Accumulated Depreciation)?
Noah Corp., a calendar year-end company, purchased equipment on 1/1/X1 with the following attributes: Cost $ 25,000 Salvage Value $ 2,000 Useful life 4 years Assuming that Duncan uses the double-declining balance (DDB) depreciation method, answer the following question:Question: How much depreciation expense should be recorded in 20X4 (year four of the asset's life)? Answer- $ ___
For each of the following depreciable assets, determine the missing amount. Abbreviations for depreciation methods are SL fa straight-line and DDB for double-declining-balance. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar. Asset A B C D MO E Cost Residual Value $ 31,000 62,000 87,000 252,000 211,000 6,000 21,000 31,000 Service Life (Years) 5 8 10 8 Depreciation Method DDB SL SL DDB Depreciation (Year 2) $ 30,000 5,600 9,000 23,100
A schedule of machinery owned by Colsen Co. is presented below: Estimated Estimated Total Cost Salvage life in Value years Machine A 260,000.00 20,000.00 12 Machine C 390,000.00 30,000.00 10 Machine 195,000.00 15,000.00 6 M Colsen computes depreciation composite method. by the The composite life (in years) for these assets is O 9.1 10 9.3 9.8 O
[The following information applies to the questions displayed below.] Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $83,600. The machine's useful life is estimated at 20 years, or 398,000 units of product, with a $4,000 salvage value. During its second year, the machine produces 33,800 units of product.
.
A schedule of machinery owned by Micco Co. is presented below: Estimated Estimated Salvage Value Life in Years Machine X $600,000 $40,000 14 Machine Y 800,000 80,000 Machine Z 300,000 60,000 Micco computes depreciation by the composite method. The composite life (in years) for these assets is 15.6 10.0 8.9 Total Cost 8.6 10 6
Oo.89. Subject :-Account

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