WhatA company buys a new machine on July 1, 2022, and it is put into useimmediately. Purchase price with installation is €132,000. It is assumedthat it will be used for 5 years and that the salvage value (salvage value)after 5 years will be €18,000. a) Calculate the annual depreciationbased on 1)Straight-line depreciationi 2) double - declining b)will be the charged depreciation for the year 2022, incl. use for sixmonths according to these depreciation methods. What will be theaccumulated depreciation and book value at the end of 2023, incl. thesetwo depreciation methods?

The objective of the question is to calculate the annual depreciation using two different methods:…

Answered: What A company buys a new machine on…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Oriole plc purchased a computer for £9.440 on January 1, 2021. Straight-line depreciation is used, based on a 5-year life and a £1,180 residual value. In 2023, the estimates are revised. Oriole now feels the computer will be used until December 31, 2024, when it can be sold for £590. Compute the 2023 depreciation.
What is the after-tax salvage value of a 3-year MACRS machine with the $10,000 purchase price if it is sold after 3 years at a salvage value of $500? The annual depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%, and the tax rate is 25%. A) $935.25 B) $741 C) $560.25 D) -$60.25 E) -$241
KM Builders Co purchases a new excavator costing £50,000. Its expected useful life is ten years, at which point it is anticipated that the excavator will have a residual value of £18,000. If the straight-line method of depreciation is used, what is the carrying amount of the excavator at the end of 4 years? O A. £32,000 O B. £48,000 OC. £50,000 OD. £37,200
A company buys a £300 computer in Year 1 and capitalizes the expenditure. Th e computer has a useful life of three years and an expected salvage value of £0, so the annualdepreciation expense using the straight-line method is £100 per year. Compared to expensing the entire £300 immediately, the company’s pretax profit in Year1 is £200 greater.1. Assume that the company continues to buy an identical computer each year at thesame price. If the company uses the same accounting treatment for each of the computers, when does the profit-enhancing eff ect of capitalizing versus expensing end?2. If the company buys another identical computer in Year 4, using the same accounting treatment as the prior years, what is the eff ect on Year 4 profits of capitalizingversus expensing these expenditures?
5. A company buys an asset with a cost of $96,000. They decide on a 6-year useful life and a $6,000 salvage value. What is the MONTHLY depreciation using straight line depreciation?
Q5.
An asset with a purchase price of $501,013 falls in the 3-year MACRS asset class. The asset will be sold at the end of a three year project for $180,745. What is the book value of the asset at the end of the project? Round your answer to the nearest dollar. Year Depreciable Allowance 1 33% 2 45 3 15 4 7
Provide step by step manual solution, given, and depreciation table for below mentioned problem. Make sure yet that your answer is the same as the given answer before sending your solution. An asset costing P50,000 has a life expectancy of 6 years and an estimated salvage value of P8,000. Calculate the depreciation charge at the end of the fourth period using fixed-percentage method. Answer. P5,263.87
Getaway Inc. bought a machine on January 1, 2021 for $50,000. Getaway plans to keep the machine for 10 years. What is the machine's carrying value on June 30, 2023 assuming Gateway uses straight-line depreciation?
What is the straight line method, Depreciation Expense, accumulation depreciation? What is the umit of activity, depreciation expense and accumulation depreciation for the problem below? October 1, 2020 - purchased a vehicle for $50,000. Its expected salvage value is $700. The estimated useful life is 4 years, and the estimated useful life is 90,000 miles. Oct 1, 2025 - sells the vehicle for $30,000 after driving it for 20,000 miles

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