Suppose a business has bought a machine for $100,000. They have estimated the machine's useful life to be eight years,with a residual value of $11.000.Use the double declining balance method to calculate below;Depreciation RateYear Beginning Book Value Depreciation Rate Depreciation expense Accumulated depreciation12asesb5f5CSg$dsh5

A double-declining balance method is a form of an accelerated depreciation method in which the asset…

Answered: Suppose a business has bought a machine…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Use the straight-line method to complete the first row of the depreciation table for an SUV that costs $41,000, has a residual value of $5,000 and an estimated life of six years. Year Annual depreciation Accumulated depreciation End-of-year book value 1 Complete the table below. Year Annual depreciation Accumulated depreciation End-of-year book value 1 $enter your response here $enter your response here $enter your response here
D. Double Declining Method Problem: Determine the rate of depreciation, the total depreciation up to end of the 8th year, and the book value at the end of 8 years for an asset that costs P15,000 now and has an estimated scrap value of P2,000 at the end of 10 years by (a) declining balance method and (b) the double declining balance method. (Make a table in Microsoft Excel)
1. A set of office equipment costs $100,000 and has a useful life of 6 years. Its estimated market value at the end of the 6th year is $5,000. Determine the depreciation amount on the 4th year and the book value at the end of the 3rd year using: a. Straight Line Method b. Double Declining Balance Method c. Sum- of - Years Digits Method d. Declining Balance Method with Switchover to SL e. MACRS GDS (assume that the assets will be disposed of on the 3rd year) f. MACRS ADS
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 machine can be purchased for $90,000 and used for five years, yielding the following income. This income computation includes annual depreciation expense of $18,000 Income Year 1 Year 3 Year 5. $6,000 $36,000 $60,000 Compute the machine's payback period. (Round payback period answer to 2 decimal places.) Year Initial invest - Year 1 Year 2 Year 3 Year 4 Year 5 Net Income Depreciation $ Year 2 $15,000 6,000 15,000 36,000 22,500 60,000 Year 4 $22,500 Net Cash Flow $ Cumulative Net Cash Flow (90,000) $ Payback period- (90,000)
5. A company buys an asset with a cost of $96,000. They decide on a 6-year useful life and a $6,000 salvage value. What is the MONTHLY depreciation using straight line depreciation?
Book value Find the book value for the asset shown in the accompanying table, assuming that MACRS depreciation is being used Recovery period (years) 5 Elapsed time since purchase (years) 2 Asset A Installed cost $839,000 The remaining book value is $ (Round to the nearest dollar.) Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Recovery year 1 2 3 4 5 6 7 8 3 years 33% 45% 15% 7% 9 10 11 Totals Percentage by recovery year* 5 years 7 years 20% 14% 32% 19% 12% 12% 5% 25% 18% 12% 9% 8% 7% 6% 6% 6% 4% 100% 100% 100% 100% *These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%) depreciation using the half-year 10 years 10% 18%…
The formula for double-declining-balance depreciation on an asset with a five-year life in its second year is Book Value × 40% = Depreciation Expense. (Book Value – Residual Value) × 40% = Depreciation Expense. (Book Value – Residual Value) × 20% = Depreciation Expense. (Original Cost × 30%) – Residual Value = Depreciation Expense.
Manji
What is the amount of double declining balance depreciation for year 4 if the cost of an asset is $75,000 the useful life is 5 years and the salvage vague is $4000
Answer it correctly and typed answer please. I ll rate.
Depreciation Problems: 1. Strand Corp purchases a machine on 4/1/20. Cost $110,000, costs to ship $5,000, costs to install $5,000. They borrowed the money from a bank. Estimated Salvage Value 20%. Estimated Useful Life = 6 years. Strand is a calendar year-end. REQUIRED: A. For the year 2020 and 2021 only a. Calculate Straight Line Depreciation expense b. Using the Accounting Equation, account for Depreciation Expense for the year c. Show the Tangible Asset section of Strand's Balance Sheet at 12/31/20 and 12/31/21

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