amWarren 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 thebuilding 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?GrewHMultiple ChoiceO$717,600$62,400$31,200$33.850< Prev

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

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 th 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? Multiple Choice O $717600 O $62,400 $31200 $33.950

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 th 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? Multiple Choice O $717600 O $62,400 $31200 $33.950

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

A machine shop purchased 10 years ago a milling machine for P65,000. A straight-line depreciation reserve had been provided on a 21-year life of the machine. The owner of the machine shop desires to replace the old milling machine with a modern unit of many advantages costing P110,000. It can sell the old unit for P25,000. How much new capital will be required for the purchase? a.Php64,047.619 b.Php80,047.619 c.Php75,047.619 d.Php90,047.619
2
3
answer quickly
Perfect Accruals Inc., purchased an asset five years ago for a cost of $950,000. The asset has a CCA rate of 30%. The company is selling this asset for 20% of its original cost. By what amount should the UCC in the asset class be reduced by? Show all calculation and formulas if necessary: Multiple Choice $190,000 $285,000 $83,092 $200,000 $193,881
A5
Hansaben
Lifeline Biofuels bult an oil rig at a cost of $4.5 million that it places into service on the first day of the current year. The company estimates the oil rig will have a useful life of 20 years (with no salvage value), after which Federal regulations require that the oil rig must be dismantled and the land area restored. The expected fair value of this asset retirement project is $845,000. The present value of these asset retirement costs is $263,000 based on the 6% after - tax discount rate Under US. GAAP, what is the company's accretion expense for the first year? A. $42,250 OB. $15.780 OC. $13,150 OD. S0
Problems 43 and 44 are based on the following statement: Used New machine machine Initial Cost 15,000 40,000 ($) Annual 8,000 2,000 operating cost ($/year) Salvage 5,000 10,000 value ($) Life (years) 3 6 Use an interest rate of 10% per year 43. The present worth of the new machine is closest to: (A) $43,630 (B) $43,066 (C) $45,210 (D) $49,660 44. To compare the machines on the basis of a present worth analysis, the present worth values to use are: (A) PWused $31,139, PW new = $43,066 (B) PWused $31,139, PW new = $37,461 (C) PWused $54,533, PW new = $43,066 (D) PWused $54,533, PW new = $37,461
Please help me to solve this problem
A chemical plant worth P 110M has an estimated life of 6 years and a projected scrap value of P 10M. after 3 years of operation an explosion made it a total loss. How much money would have to be raised to put up a new plant costing P 150M, if depreciation reserved had been maintained during its 3 years of operation by SYD Method? Select one: a. P 82.4M b. P 78.6M c. P 100M d. P 92.8M
A machine shop purchased 10 years ago a milling machine for P65,000. A straight-line depreciation reserve had been provided on a 21-year life of the machine. The owner of the machine shop desires to replace the old milling machine with a modern unit of many advantages costing P110,000. It can sell the old unit for P25,000. How much new capital will be required for the purchase? a.Php 64,047.619 b.Php 75,047.619 c.Php 80,047.619 d.Php 90,047.619