SHOW COMPUTATION AND SOLUTION An equipment cost P67,000 and has a life of 10 years and salvage value of P53,500. Determine its book value at the end of 8 years by Double-Declining Balance Method.     a. 11,240.73   b. 49,436.35  c. 12,350.94 d. 48,710.00

Q: An electronic balance costs BD9,000 and has an estimated salvage value of BD800 at the end of its 10…

A: Double Declining Balance Method Rate=Straight line Method Rate×2

Q: Equipment having a first cost of $158,000, a life of 10 years, and a salvage value of $23,000. What…

A: MACRS: It is a modified accelerated cost recovery system used in the United States  to calculate…

Q: 2. A piece of specific office equipment has a first cost of Php20,000 and a salvage value of Php1000…

A: A tangible asset's cost is distributed throughout its useful life using depreciation expenditure in…

Q: A new barcode reading device has an inslated cost basis of $21,760 and an estimated service ide of…

A: Depreciation is a way to allocate the cost of an asset over the total useful life of an asset. Thus,…

Q: A certain machine costs 2.5M while its salvage value is 150,000 at the end of 8 years. Determine its…

A: Formula: Depreciation expense =  ( Cost of Asset - salvage value ) / Useful life

Q: An equipment cost P67,000 and has a life of 10 years and salvage value of P53,500. Determine its…

A: Depreciation means the amount fixed assets written off due to normal wear and tear , normal usage…

Q: Use the following data: Asset cost $120,000 Expected life 4 years Estimated salvage value…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: Air handling equipment that costs P12, 000 has a life of eight years with a P2, 000 salvage value.…

A: Under the declining balance method, the depreciation is charged on the asset at a certain percentage…

Q: Calculate the depreciation life, if the depreciation charge value for the second year is 409, cost…

A: Under sum of years digits method of depreciation, depreciation is charged by taking sum of all…

Q: Find the book value of an asset that has an installed cost of $200,000, a recovery period of 5 years…

A: For calculation of book value, we need to find the total accumulated depreciation for elapsed 3…

Q: You are to create a year-by-year depreciation schedule for an asset that has a cost basis (B) of…

A: The salvage Value is $80,000 The price of the Equipment is $950,000 Project life is 10 years To…

Q: An equipment costing P500,000.00 has a salvage value of P56,992.00 Determine its book value after…

A: Every fixed asset loses its value over a period. Depreciation is being recorded on the cost of…

Q: A MACHINE COSTS P 7,000,000.00 LAST 4 YEARS AND HAS A SALVAGE VALUE OF P 350,000. USE DELINING…

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

Q: A certain office equipment has a first cost of P 20,000 and a salvage value of P 1,000 at the end of…

A: Under the declining balance method, depreciation is calculated on reduced book value every year.…

Q: Consider the following data on an asset: • Cost of the asset = $38,000 • Useful life = 6 years •…

A: The depreciation on an asset can be charged by using different depreciation method such as straight…

Q: A machine cost 75,000 and the salvage value is 15,000 after 15 years. Find, a) the depreciation by…

A: Cost of Machinery = 75,000 Salvage Value = 15,000   Note: Since, you have posted a question with…

Q: A certain office equipment has a first cost of P 20,000 and a salvage value of P 1,000 at the end of…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: A machine cost P 1,800,000.00. It has a salvage value of P 300,000.00 at the end of 5 years. If…

A: The depreciation is a method to allocate the cost of the asset over its useful life. The…

Q: machine costs PhP 7 654 + 32 x (01), lasts 8 years and has a salvage value at the end of PhP 345.…

A: Sum of digits method in this sum of digits is used for depreciation.

Q: A machine has a first cost of P97,198.62 and has an expected salvage value after 10 years…

A: Formula: Ending Book value = Beginning book value - Depreciation expense

Q: Find the book value of office equipment purchased at a cost C at the end of the nth year if it is to…

A: The amount to be reduced from the value of a fixed asset every year throughout its useful life is…

Q: 29. The first cost of a machine is P1,800,000 with a salvage value of P300,000 at the end of its…

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

Q: An equipment cost P67,000 and has a life of 10 years and salvage value of P53,500. Determine its…

A: Depreciation is the allocation of cost of asset over the useful life of the asset. Under double…

Q: An equipment cost P67,000 and has a life of 10 years and salvage value of P53,500. Determine its…

A: Here, Cost = P67,000 Life = 10 years Salvage Value = P53,500 (after 10 years) To Find: Book Value at…

Q: A certain factory has a first cost of P10,000,000 with a salvage value of P100,000 at the end of its…

A: Straight line method  Sinking Fund Method Declining balance Method Double Declining Balance Method…

Q: An equipment costing P3, 015, 000 has an estimated life of 12 years with a salvage value of P200,…

A: Depreciation is known as a decrease in the value of assets because of the use of that asset. it is a…

Q: The first cost of a machine is P1,800,000 with a salvage value of P300,000 at the end of its life of…

A: Rate of depreciation under declining balance method = 1useful life ×100 = 15×100 = 20% Sum of useful…

Q: PROVE THAT OPTION A IS THE ANSWER

A:

Q: A certain machine has book value of P173,205.08 after 5 years and P82,187.59 after 8 years. The book…

A: Suppose Depreciation Rate = r Value after 8 years = Value after 5 years x (1 - r)^3 Then, Initial…

Q: A certain machine has book value of P140,452.78 after 5 years and P66,037.08 after 8 years. The book…

A: As period goes on value of the equipment goes on decreasing as period goes away and that decrease in…

Q: An equipment costing P1.8M has a salvage value of P300,000 after 5 years. Calculate the depreciation…

A: Cost of Equipment is P1.8 million or P1,800,000 Salvage value is P300,000 Life of Equipment is 5…

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.