The useful life of a milling machine costing Php 500,000 and a scrap value of Php 10,000 is estimated to be 104,000 units of product and the number of units produced each year is estimated as follows: 1st year: 25,500 units 2nd year: 23,000 units 3rd year: 19,800 units 4th year: 18,800 units 5th year: 16,900 units Use the product unit method to find the depreciation charge for each year. Construct a depreciation schedule.

Q: A company purchased equipment with a cost of $96,000. Residual value at the end of a six-year useful…

A: (a)

Q: Calculate depreciation in the following case La Rosa del Monte has a moving truck that performs…

A: Truck Cost Less: Estimated residual value Depreciable value Divide by: Estimated service…

Q: from the following facts,for the units produced depreciation what is  given cost - $40,000…

A: Depreciation can be defined as a form of non-cash expenditure which represents normal wear and tear…

Q: Amicab 50,000 production units. have a residual value of P35,000. The estimated useful life is 5…

A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…

Q: A motorized cultivator with a first cost of $28,000 and salvage value of 25% of the first cost is…

A: Cost=$28000Salvage value=25%Number of years=5yearsOperating cost=$43000

Q: A machine costing P1,500,000.00 has an estimated economic life of 7 years. If the salvage value is…

A: The depreciation on fixed assets can be computed using various methods as straight line method,…

Q: A machinery that costs $100,000, has a service life of 5 years and a salvage value of $10,000 at the…

A: Initial Investment  $   1,00,000.00 Salvage Value  $      10,000.00 Tax Rate  30% MARR After…

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 lathe machine costs ₱650,000 and the salvage value of ₱65,000 after 20 years. Find the annual…

A: Answer:-  Depreciation :- The accounting technique of spreading out the cost of a tangible item over…

Q: The cost of an equipment in a factory is 26x106 TL. The salvage value is given as 3x106 TL at the…

A: Depreciation is the reasonable method to allocate the asset cost to its useful life.

Q: A machine with a cost of $153,000 has an estimated residual value of $17,000 and an estimated life…

A: Depreciation is considered an expense charge on the value of the Asset. It can be calculated by…

Q: A machine has a first cost of P36,000 and a salvage value ofP4,000 after 8 years. Find the annual…

A: Formula: Straight line method depreciation expense = ( Asset cost - Salvage value ) / Useful life…

Q: A machine of the factory cost RM100,000. The machines depreciates 10% every year by using straight…

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

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: At the end of its economic life of P45,000 operational hours, an item costing P500,000 has a salvage…

A: Let's understand some basic Depreciation is an accounting method of allocating the cost of a…

Q: from the following facts,for the units produced depreciation what is  given cost - $40,000…

A: Given that, cost - $40,000 residual value - $5,000 estimated  total units produced for useful life…

Q: A manufacturing system for fabricated metal products is purchased in the middle of the fiscal year…

A: Manufacturing business entity can be defined as the business were the raw materials are processed…

Q: A machine can be purchased for $80,000 and used for five years, yielding the following Income. This…

A: Step 1:The calculation for the payback period is given below: -Payback Period=Last Year With…

Q: Mazaya company uses the units-of-activity method in computing depreciation. A new plant asset is…

A: Depreciation cost per unit = (Cost of plant assets - Estimated residual value) / Estimated units…

Q: A machine was installed at a cost of RM3,600. Its useful life was estimated to be five years or…

A: Depreciation (Straight line method) = (Cost of the assets - Salvage value) / Life of the assets =…

Q: A lathe machine costs ₱650,000 and the salvage value of ₱65,000 after 20 years. Find the…

A: Using declining balance method, the asset is depreciated based on its book value. The depreciation…

Q: A kitchen cooking equipment costs 5800 RO and it has a life of 8 years with a scrap value of 1000…

A: Formula for calculation of Rate under Written down value Method Rate of depreciation = 1 – [(Scrap…

Q: A machine with a cost of $120,000 has an estimated residual value of $15,000 and an estimated life…

A: b. $35,000Explanation:To calculate the depreciation expense for the second full year using the…

Q: 1. An industrial plant purchase of assorted materials for production which cost in the amount of…

A: a. Computation of annual depreciation cost by straight line method.   =(Purchase cost + Handling and…

Q: The cost of equipment is P500,000 and the cost of installation is P30,000. If the salvage value is…

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

Q: Chaparral Sand and Gravel purchased a pit for $900,000 that is expected to yield 6000 tons of gravel…

A: For non renewal natural resources the concept of depliciation is used instead of depriciation.For…

Q: A man acquired a machinery purchased for PhP 1,100,000.00 and paid for transportation charge of PhP…

A: Different methods of depreciation are  double decline method, straight-line method, units of…

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 machine was installed at a cost of RM3,600. Its useful life was estimated to be five years or…

A: Depreciation (Straight line method) = (Cost of the assets - Salvage value) / Life of the assets =…

Q: The initial cost of a paint sand mill, including its installation is P 700,000.00 . The BIR approved…

A: The calculation of annual depreciation under straight line method has been made as follows: Annual…

Q: . A machine costs 2,500,000. At the end of its economic life of five years, its salvage value is Php…

A: Sum of years depreciation aims to depreciate a company's assets at an accelerated rate. Companies…

Q: A draw bench for precision forming and strengthening of carbon steel tubing has a cost of…

A:

Q: construction equipment costs 700,000 pesos and will have a salvage value of 30% of its original cost…

A: Sum of useful years = 4+3+2+1 = 10

Q: was sold as scrap after ne the total depreciatio

A: Depreciation: It is the expense recorded in books under the income statement. It is the amortization…

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.