The company's undepreciated capital cost at the beginning of the current year is close to: a) $114.700 b) $294,000 c) $291,060 d) $186,000 The total depreciation deduction permitted at the end of the current year is close to: a) $2,940 b) $265,700 c) $114,700 d) $28,300 If the company purchases a second forklift for $12,000 at the beginning of next year, the depreciation deduction for asset class 38 at the end of next year is close to: a) $7,800 b) $4,740 c) $6,000 d) $3,600 Considering the purchase of the 2nd forklift, the book value of the company's assets at the end of next year is close to: a) $244,485 b) $242,669 c) $288,149 d) $254.900
The company's undepreciated capital cost at the beginning of the current year is close to: a) $114.700 b) $294,000 c) $291,060 d) $186,000 The total depreciation deduction permitted at the end of the current year is close to: a) $2,940 b) $265,700 c) $114,700 d) $28,300 If the company purchases a second forklift for $12,000 at the beginning of next year, the depreciation deduction for asset class 38 at the end of next year is close to: a) $7,800 b) $4,740 c) $6,000 d) $3,600 Considering the purchase of the 2nd forklift, the book value of the company's assets at the end of next year is close to: a) $244,485 b) $242,669 c) $288,149 d) $254.900
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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please Do not Give image format and question (not in excel) and provide explained details thanks!
Transcribed Image Text:Willis and Gouw manufacturing company produces PVC pipes and drainage ducts for use in the
agriculture industry. The table below shows a list of the major equipment currently owned by the
company and current book value.
Equipment
2 Trucks
1 Fork Lift
Poly Vinyl Patent
1 Factory Building
(45) The company's
a) $114,700
(46)
Book Value
$30.000
$14,000
$10,000
$240.000
CCA Class
16
38
44
1
CCA Rate
40%
30%
25%
4%
undepreciated capital cost at the beginning of the current year is close to:
b) $294,000
c) $291,060
d) $186,000
The total depreciation deduction permitted at the end of the current year is close to:
a) $2,940
b) $265,700
d) $28.300
c) $114.700
(47)
If the company purchases a second forklift for $12,000 at the beginning of next year, the
depreciation deduction for asset class 38 at the end of next year is close to:
a) $7,800
b) $4.740
c) $6,000
d) $3,600
b) $242,669
(48) Considering the purchase of the 2nd forklift, the book value of the company's assets at the
end of next year is close to:
a) $244,485
c) $288.149
d) $254.900
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