the total depreciation after 3 years
Q: Find the book value at the end of 4 years, assuming straight line depreciation. Select one: a. 2360…
A: Answer - Option A is correct.
Q: The initial cost of a paint sand mill, including its installation is P 800,000. The depreciable…
A: Formula: Straight line method deprecation = ( Asset cost - Salvage value ) / Useful life
Q: A machine costs RO 40,000 with a salvage value of RO 20,000. The expected life of the machine is…
A: Under units of production method, depreciation is calculated on the basis of units produced during…
Q: machine costs P 8,000 which last for 7 years with a salvage value at the end of its life of P 355.…
A: The solution to the given question is given below.
Q: A new electric saw for cutting small pieces of lumber in a furniture manufacturing plant has a cost…
A: Cost = $4000 n = 10 years Salvage value = 0
Q: Using the formulas, determine the depreciation charge for year 2 and the book value at the end of…
A: The term depreciation refers to an accounting method which is used to allocate the cost of asset…
Q: A high-precision programmable router for shaping furniture components is purchased by Henredon for…
A: Under declining balance method, the depreciation is charged on the book value of the assets.
Q: An automated assembly robot that cost $400,000 has a depreciable life of five years with a $100,000…
A: The book value is the cost of the assets less the depreciation for the period. The depreciation is…
Q: Apex Fitness Club uses straight-line depreciation for a machine costing $23,860, with an estimated…
A: Calculation of machine’s book value:Results of formulas used in excel sheet is as follows:
Q: A new electric saw for cutting small pieces of lumber in a furniture manufacturing plant has a cost…
A: Depreciation refers to reduction or decrease in the asset value over the estimated asset life, in…
Q: A copy machine was purchased for $28,000. It is estimated that the machine will have a useful life…
A: Units of activity method is one of the depreciation method.It is used to record depreciation based…
Q: A new electric saw for cutting small pieces of lumber in a furniture manufacturing plant has a cost…
A: Double Depreciation MethodR=2NDepreciation (dk)=B⋅R(1−R)k-1 Book Value (BVk)= B*(1-R)k Given, Cost…
Q: A machine costs RO 40,000 with a salvage value of RO 20,000. The expected life of the machine is…
A: Given: Cost Value = RO 40,000 Salvage value = RO 20,000 So, Depreciation per hour = Cost value -…
Q: A new electric saw for cutting small pieces of lumber in a furniture manufacturing plant has a cost…
A: Modified Accelerated cost recovery system (MACRS) Modified Accelerated cost recovery system (MACRS)…
Q: A draw bench for precision forming and strengthening of carbon steel tubing has a cost of…
A:
Q: You have just bought a new pusher dozer for your equipment fleet. Its cost is $100,000. It has…
A: Depreciation is a decrease in the value of an asset due to various reasons like wear and tear,…
Q: An industrial air conditioner with an expected useful operating life of 30.000 hours costs $45,000.…
A: Depreciation is the reduction in the value of a fixed asset because of wear and tear over the years…
Q: An automated assembly robot that cost $352,000 has a depreciable life of 5 years with a $85,000…
A: Depreciation for a year = Opening book value * depreciation rate for that year. Ending book value =…
Q: An elective saw for cutting small pieces of lumber in a furniture manufacturing plant has an initial…
A: Annual depreciation = (cost of the assets - residual value)/life of the assets = (4000-0)/10 = 400
Q: An assembly line conveyor system with a 5-year life is to be depreciated by the DDB method. The…
A: Double Declining Balance (DDB) method is a depreciation method under which the depreciation rate is…
Q: Manual bending machine for bending metal pipe was purchasec $5,000 more was spent on its…
A: Given: Purchase Price of Machine = $50,000 Installation Charges = $5,000 Actual Purchased Price =…
Q: Albertus Natural Stone Quarry purchased a computer-controlled face-cutter saw for $80,000. The unit…
A: Double declining balance method: It is a method of calculating depreciation in which the rate of…
Q: Apex Fitness Club uses straight-line depreciation for a machine costing $26,350, with an estimated…
A: Depreciation expense is part of cost of the asset charged as expense in the income statement.…
Q: A draw bench for precision forming and strengthening of carbon steel tubing has a cost of $950,000.…
A: Solution Depreciation represents how much assets value has been reduced. It is applicable on…
Q: A draw bench for precision forming and strengthening of carbon steel tubing has a cost of…
A: The depreciation expense is charged on the fixed assets as reduction in the value of the fixed…
Q: A draw bench for precision forming and strengthening of carbon steel tubing has a cost of $950,000.…
A: Depreciation under straight line method : under this method depreciation is equally charged on over…
Q: Welding machine cost P50,000 and has a life of 12 years and a salvage value of P8,000 at the end of…
A: Cost = P 50000 Expected Life of the Welding machine = 12 years Depreciation on 1st Year = Cost * ( 1…
A new electric saw for cutting small pieces of lumber in a furniture manufacturing plant has a cost basis of $ 5,000 and a 5 - year
Step by step
Solved in 3 steps
- Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value at the time of purchase was $15,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. Calculate annual depreciation expense for the first four years. Determine the depreciation expense for the final fifteen years of the assets life, and create the journal entry for year five.Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.IMPACT OF IMPROVEMENTS AND REPLACEMENTS ON THE CALCULATION OF DEPRECIATION On January 1, 20-1, Dans Demolition purchased two jackhammers for 2,500 each with a salvage value of 100 each and estimated useful lives of four years. On January 1, 20-2, a stronger blade to improve performance was installed in Jackhammer A for 800 cash and the compressor was replaced in Jackhammer B for 200 cash. The compressor is expected to extend the life of Jackhammer B one year beyond the original estimate. REQUIRED 1. Using the straight-line method, prepare general journal entries for depreciation on December 31, 20-1, for Jackhammers A and B. 2. Enter the transactions for January 20-2 in a general journal. 3. Assuming no other additions, improvements, or replacements, calculate the depreciation expense for each jackhammer for 20-2 through 20-4.
- Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for 120,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expense.Grandorf Company replaced the engine in a truck for 8,000 and expects the new engine will extend the life of the truck two years beyond the original estimated life. Related information is provided below. Cost of truck 65,000 Salvage value 5,000 Original estimated life 6 years The truck was purchased on January 1, 20-1. The engine was replaced on January 1, 20-6. Using straight-line depreciation, compute depreciation expense for 20-6.Urquhart Global purchases a building to house its administrative offices for $500,000. The best estimate of the salvage value at the time of purchase was $45,000, and it is expected to be used for forty years. Urquhart uses the straight-line depreciation method for all buildings. After ten years of recording depreciation, Urquhart determines that the building will be useful for a total of fifty years instead of forty. Calculate annual depreciation expense for the first ten years. Determine the depreciation expense for the final forty years of the assets life, and create the journal entry for year eleven.
- Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. With DEPREC5 still on the screen, click the Chart sheet tab. This chart shows the accumulated depreciation under all three depreciation methods. Identify below the depreciation method that each represents. Series 1 _____________________ Series 2 _____________________ Series 3 _____________________ When the assignment is complete, close the file without saving it again. Worksheet. The problem thus far has assumed that assets are depreciated a full year in the year acquired. Normally, depreciation begins in the month acquired. For example, an asset acquired at the beginning of April is depreciated for only nine months in the year of acquisition. Modify the DEPREC2 worksheet to include the month of acquisition as an additional item of input. To demonstrate proper handling of this factor on the depreciation schedule, modify the formulas for the first two years. Some of the formulas may not actually need to be revised. Do not modify the formulas for Years 3 through 8 and ignore the numbers shown in those years. Some will be incorrect as will be some of the totals. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as DEPRECT. Hint: Insert the month in row 6 of the Data Section specifying the month by a number (e.g., April is the fourth month of the year). Redo the formulas for Years 1 and 2. For the units of production method, assume no change in the estimated hours for both years. Chart. Using the DEPREC5 file, prepare a line chart or XY chart that plots annual depreciation expense under all three depreciation methods. No Chart Data Table is needed; use the range B29 to E36 on the worksheet as a basis for preparing the chart if you prepare an XY chart. Use C29 to E36 if you prepare a line chart. Enter your name somewhere on the chart. Save the file again as DEPREC5. Print the chart.Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After three years of recording depreciation, Montezuma determines that the delivery truck will only be useful for another three years and that the salvage value will increase to $4,000. Determine the depreciation expense for the final three years of the assets life, and create the journal entry for year four.Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for ten years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.
- To test your formulas, assume the machine purchased had an estimated useful life of three years (20,000, 30,000, and 50,000 hours, respectively). Enter the new information in the Data Section of the worksheet. Does your depreciation total 320,000 under all three methods? There are three common errors made by students completing this worksheet. Lets clear up two of them. One, an asset that has a three-year life should have no depreciation claimed in Year 4. This can be corrected using an =IF statement in Year 4. For example, the correct formula in cell C32 is =IF(B32D9,0,(D7D8)/D9) or =IF(B32D9, 0, SLN(D7, D8, D9)). You may wish to edit what you have already entered rather than retype it. Two, as mentioned in requirement 2, the double-declining-balance calculation needs to be modified in the last year of the assets life. Assuming you have already modified the formula for Year 4 (per instructions in step 2), alter the formula for Year 3 also. If you corrected any formulas, test their correctness by trying different estimated useful lives (between 3 and 8) in cell E9. Then reset the Data Section to the original values, save the revised file as DEPREC2, and reprint the worksheet to show the correct formulas. The third common error doesnt need to be corrected in this problem. The general form of the double-declining-balance formula needs to be modified to check the net book value of the asset each year to make sure it does not go below salvage value. =DDB does this automatically, but if you are writing your own formulas, this gets very complicated and is beyond the scope of the problem.Montezuma Inc. purchases a delivery truck for $20,000. The truck has a salvage value of $8,000 and is expected to be driven for ten years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After five years of recording depreciation, Montezuma determines that the delivery truck will be useful for another five years (ten years in total, as originally expected) and that the salvage value will increase to $10,000. Determine the depreciation expense for the final five years of the assets life, and create the journal entry for years 6–10 (the entry will be the same for each of the five years).Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. Dunedin buys equipment frequently and wants to print a depreciation schedule for each assets life. Review the worksheet called DEPREC that follows these requirements. Since some assets acquired are depreciated by straight-line, others by units of production, and others by double-declining balance, DEPREC shows all three methods. You are to use this worksheet to prepare depreciation schedules for the new machine.