The purchase price of an equipment is $45,000 which is expected to drop to $12,000 after 10 years of use. If the applicable depreciation method is the straight line depreciation, what is the book value of this equipment at the beginning of the 7th year? O a. $3,300 Ob.$19,800 Oc. $21,900 O d. $23,100 O e. $25,200

The purchase price of an equipment is $45,000 which is expected to drop to $12,000 after 10 years of use. If the applicable depreciation method is the straight line depreciation, what is the book value of this equipment at the beginning of the 7th year? O a. $3,300 Ob.$19,800 Oc. $21,900 O d. $23,100 O e. $25,200

Name: The purchase price of an equipment is $45,000 which is expected to dr
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: The purchase price of an equipment is $45,000 which is expected to drop to S12,000 after 10 years of use. If theapplicable depreciation method is the straight line depreciation, what is the book value of this equipment atthe beginning of the 7th yea

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

The purchase price of an equipment is $45,000 which is expected to drop to $16,000 after 10 years of use. If the applicable depreciation method is the straight line depreciation, what is the book value of this equipment at the beginning of the 8th year? a. $20,300 b. $24,700 c. $23,200 d. $21,800 e. $2,900
4.It is know that the book value of an asset depreciated through declining balance depreciation is $3000 in year 3.Purchase price of the asset was $3800.What is the asset salvage value at the end of its useful life,which is 10 years?
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 $15,000 now and has an estimated scrap value of $2,000 at the end of 10 years by (a) declining balance method and (b) the double declining balance method
am Warren Company plans to depreciate a new building using the double declining balance depreciation method. The building cost is $780,000. The estimated residual value of the building is $48,000 and it has an expected useful life of 25 years. What is the building's book value at the end of the first year? Grew H Multiple Choice O $717,600 $62,400 $31,200 $33.850 < Prev
KFC bought an equipment for 2500 RO. Its useful life is 5 years and the salvage value is 500 RO. Using straight line depreciation, what is the book value at end of third year? O a. 900 RO O b. 1300 RO O c. 2100 RO O d. 1700 RO
What is the depreciation deduction, using 200% DB method, after year 2 for an asset that costs P60430 and has an estimated salvage value of $7,000 at the end of its 5-year useful life? Round your answer to 2 decimal places.
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
If a new machine is purchased for OMR 250,000 that has a useful life of 5 years with no residual value and the depreciation is expected to be charged on straight –line method. What would be the carrying value of the machine in the financial statements after 2 years? a. OMR 40,000 b. OMR 100,000 c. OMR 150,000 d. OMR 180,000
• Exel purchased equipment for $100,000 on January 1st, 2020. The equipment will last for 4 years with no salvage value and will be depreciated straight line. On January 1st, 2022, Exel determined the equipment should be revalued +5%, according to IFRS. Depreciation Expense for December 31st, 2022 will be : O $26,250. O $12,000. O $18,000. O $22,000.
An equipment is purchased for P450,000.00 prepare a six year depreciation schedule using the Matheson formula if the estimated book value after five years is P87,500.00
N6 A new machine tool is being purchased for $260,000 and is expected to have a $36,000 salvage value at the end of its 5-year useful life. Assume any remaining depreciation is claimed in the last year. Compute the depreciation schedules for this capital asset, using the following methods: (a) Straight-line depreciation (b) MACRS Note: No statement is required for this problem.
What is the value of an asset after 8 years of use if it depreciates from its original value of P120,000 to its salvage value of 3% in 12 years? O P44,200 O P44,020 O P42,400 O P43,000 P46,000