Problem 1: A dump truck was bought for P750,000 three years ago. It will have a salvage value of P100,000 two years from now. Using the following methods, determine bookvalue at the end of 3d year, accrued depreciation at the end of 2nd year and annual depreciation cost at the end of 4 year. Show solutions for the asked years. d. Double Declining Balance MethodBOOK VALUE AT THEBEGINNING OF THE YEARYEARANNUALACCRUED DEPRECIATIONBOOK VALUE AT THE END OF THEDEPRECIATION COSTYEAR

The long term asset, when purchased, is not expensed in that year.A portion of that cost is expensed…

Problem 1: A dump truck was bought for P750,000 three years ago. It will have a salvage value of PI00,000 two years from now. Using the following methods, determine book value at the end of 3d year, accrued depreciation at the end of 2d year and annual depreciation cost at the end of 4 year. Show solutions for the asked years.

Problem 1: A dump truck was bought for P750,000 three years ago. It will have a salvage value of PI00,000 two years from now. Using the following methods, determine book value at the end of 3d year, accrued depreciation at the end of 2d year and annual depreciation cost at the end of 4 year. Show solutions for the asked years.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

1e. An asset is purchased for $90,000. It is expected to have a useful life of six years and a salvage value of $18,000 at the end of its useful life. Find the depreciation amount in the second year using MACRS-GDS with a recovery period of seven years.
IL PROBLEM SOLVING 1. An equipnent costing P250. 000 has an estimated life of 15 years with a book value of P30. 000 at the end of tha period. Compute the depreciation charge and its book value after 10 years using decliningr balance method
An asset cost $200,000. It has a salvage value of $40,000. It has a 10 year life. What would accumulated depreciation be at the end of three years assuming straight line depreciation? Group of answer choices $60,000 $40,000 $48,000 $160,000
Mercury Drug purchased a Laboratory equipment for P 100,000 and plans to keep itfor 15 years. If the salvage value is Php 15,000 at the end of 15th year, what is the depreciation inthe third year? Use Sum of the Years Method. (Show your solution by using the long method bytabulating)
N1. Account A piece of equipment is purchased for $40,000 and has an estimated salvage value of $1,000 at the end of the recovery period. Prepare a depreciation schedule for the piece of equipment using the straight-line method, the sum-of-the-years method, and the 200% declining-balance method with a recovery period of five years. Compare these depreciation methods in a graph.
1. A commercial company plans to buy the device for $ 20,000 and is expected to sell it for $ 8,000 in the future. The useful life of the device is estimated at 8 years. It is desirable to calculate the depreciation of each year and the book value of each year using any of the following methods: a) Linear b) Sum of year figures c) Trial balance
Compute the difference on the depreciation using SLM and DBM after 4 years. Enter a positive value. An equipment bought at P132,726 and has a salvage value of 30,084 after 15 years.
Please show all your work
You are to create a year-by-year depreciation schedule for an asset that has a cost basis (B) of $950,000 and estimated salvage value (SV10) of $80,000 after 10 years. For the straight-line and 200% declining balance methods, use a depreciable life (N) of 10 years. For MACRS, use a recovery period (N) of 7-yrs. ΕΟΥ, Κ 0 1 2 3 4 5 6 7 8 9 10 Straight-Line dk BVk 950,000 Declining Balance dk BVk 950,000 MACRS dk BVk 950,000 Upload your table AND summary calculations to this assignment. You do not need to show EVERY calculation but you do need to include the equations you used to complete the table.
please answer question 1,2 and 3 An electrical component manufacturer budgets to sell 35,000 units although the factory has the capacity to produce 40,000 units under normal circumstances. Direct costs per unit are as follows: Wages $2.00 Materials $8.00 Overheads $4.00 Fixed costs for the period are expected to be $200,000. The selling price is $22 per unit. You are going to: Calculate how many units must be made and sold in order to breakeven during the period and then express the information on a CVP chart. 2. Ascertain the budgeted profit for the period, if 35,000 units are sold. 3. State the number of units to be manufactured when the amount of capital invested in this production is $640,000 and the directors require a 20% return on capital employed.
Find the book value of office equipment purchased at a cost C at the end of the nth year if it is to be depreciated by the double declining-balance method over 10 years. (Assume a salvage value of $0. Round your answer to the nearest cent.) C = $100,000, n = 9 $=
a) an asset is purchased for $200,000. The estimated life is 8 years and the salvage value is $20.000.assuming the item is depreciated via straight line method, find the book of the asset at the end of 5 years? b) If one-time amount of $500 is invested at an annual interest rate of 8% (compound annually), find its future worth at the end of 20 years?