Financial Accounting
9th Edition
ISBN: 9781259738692
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 8, Problem 8.5ME
Computing Book Value (Double-Declining-Balance
LO8-3 Calculate the book value of a three-year-old machine that has a cost of $55,000, an estimated residual value of $5,000, and an estimated useful life of five years. The company uses double-declining-balance depreciation. Round to the nearest dollar.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A machine with a cost of $67,600.00 has an estimated residual value of $3,188.00 and an estimated life of 5 years or 15,868 hours. What is the amount of depreciation for the second full year, using the double declining-balance method?
Select the correct answer.
$25,764.80
$13,520.00
$16,224.00
$27,040.00
A machine with a cost of $66,200.00 has an estimated residual value of $3,201.00 and an estimated life of 5 years or 18,256 hours. What is the amount of depreciation for the second full year, using the double declining-balance method?
Select the correct answer.
a.) $15,888.00
b.) $26,480.00
c.) $13,240.00
d.) $25,199.60
T1.
A machine has a cost of $17,100, an estimated residual value of $4,020, and an estimated service life of seven years. The machine is being depreciated on a straight-line basis. At the end of the second year, what amount will be reported for accumulated depreciation? (Do not round your intermediate calculations. Round annual depreciation amount to the nearest dollar amount.) Multiple Choice $1,869 $3,737 $13,363 $4,886
Chapter 8 Solutions
Financial Accounting
Ch. 8 - Define long-lived assets. Why are they considered...Ch. 8 - Prob. 2QCh. 8 - What are the classifications of long-lived assets?...Ch. 8 - Prob. 4QCh. 8 - Describe the relationship between the expense...Ch. 8 - Prob. 6QCh. 8 - Prob. 7QCh. 8 - In computing depreciation, three values must be...Ch. 8 - The estimated useful life and residual value of a...Ch. 8 - Prob. 10Q
Ch. 8 - Prob. 11QCh. 8 - Prob. 12QCh. 8 - Prob. 13QCh. 8 - Prob. 14QCh. 8 - Prob. 15QCh. 8 - Why is depreciation expense added to net income...Ch. 8 - Miga Company and Porter Company both bought a new...Ch. 8 - Leslie, Inc.. followed the practice of...Ch. 8 - Prob. 3MCQCh. 8 - Prob. 4MCQCh. 8 - Prob. 5MCQCh. 8 - Prob. 6MCQCh. 8 - Prob. 7MCQCh. 8 - Prob. 8MCQCh. 8 - Prob. 9MCQCh. 8 - (Chapter Supplement) Irish Industries purchased a...Ch. 8 - Prob. 8.1MECh. 8 - Prob. 8.2MECh. 8 - Prob. 8.3MECh. 8 - Prob. 8.4MECh. 8 - Computing Book Value (Double-Declining-Balance...Ch. 8 - Computing Book Value (Units-of-Production...Ch. 8 - Identifying Asset Impairment LO8-4 For each of the...Ch. 8 - Prob. 8.8MECh. 8 - Prob. 8.9MECh. 8 - Prob. 8.10MECh. 8 - Prob. 8.1ECh. 8 - Prob. 8.2ECh. 8 - Computing and Recording Cost and Depreciation of...Ch. 8 - Determining Financial Statement Effects of an...Ch. 8 - Determining Financial Statement Effects of an...Ch. 8 - Recording Depreciation and Repairs (Straight-Line...Ch. 8 - Prob. 8.7ECh. 8 - Prob. 8.8ECh. 8 - Computing Depreciation under Alternative Methods...Ch. 8 - Computing Depreciation under Alternative Methods...Ch. 8 - Prob. 8.11ECh. 8 - Prob. 8.12ECh. 8 - Prob. 8.13ECh. 8 - Computing Depreciation and Book Value for Two...Ch. 8 - Prob. 8.15ECh. 8 - Recording the Disposal of an Asset at Three...Ch. 8 - Prob. 8.17ECh. 8 - Prob. 8.18ECh. 8 - Prob. 8.19ECh. 8 - Prob. 8.20ECh. 8 - Prob. 8.21ECh. 8 - Prob. 8.22ECh. 8 - (Chapter Supplement) Recording a Change in...Ch. 8 - Prob. 8.24ECh. 8 - Prob. 8.25ECh. 8 - Explaining the Nature of a Long-Lived Asset and...Ch. 8 - Analyzing the Effects of Repairs, an Addition, and...Ch. 8 - Prob. 8.3PCh. 8 - Best Buy Co., Inc., headquartered in Richfield,...Ch. 8 - Evaluating the Effect of Alternative Depreciation...Ch. 8 - Recording and Interpreting the Disposal of Three...Ch. 8 - Prob. 8.7PCh. 8 - Prob. 8.8PCh. 8 - Computing Goodwill from the Purchase of a Business...Ch. 8 - Prob. 8.10PCh. 8 - Prob. 8.11PCh. 8 - Explaining the Nature of a Long-Lived Asset and...Ch. 8 - Prob. 8.2APCh. 8 - Computing the Acquisition Cost and Recording...Ch. 8 - Prob. 8.4APCh. 8 - Recording and Interpreting the Disposal of Three...Ch. 8 - Prob. 8.6APCh. 8 - Prob. 8.7APCh. 8 - Asset Acquisition, Depreciation, and Disposal Pool...Ch. 8 - Case A. Dr Pepper Snapple Croup, Inc., is a...Ch. 8 - Prob. 8.1BCOMPCh. 8 - Prob. 8.1CCOMPCh. 8 - Case D. Stewart Company reports the following...Ch. 8 - Case E. Matson Company purchased the following on...Ch. 8 - Prob. 8.1CPCh. 8 - Finding Financial Information LO8-1, 8-2, 8-6...Ch. 8 - Comparing Companies within an Industry Refer to...Ch. 8 - Prob. 8.4CPCh. 8 - Prob. 8.5CPCh. 8 - Prob. 8.6CPCh. 8 - Evaluating the Impact of Capitalized Interest on...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Provide manual solution. Thank youarrow_forwardA machine has a cost basis of 1000000 TL and a salvage value of 80000 TL. Depreciation period is 8 years. Company wants to apply DDB (double declining balance) method. What will be the depreciation amount at year 7? (Switch to straight line method if it is necessary.) 44495 52435 115000 48989 .arrow_forwardProvide manual solution. Thank youarrow_forward
- A machine has a cost of $15,600, an estimated residual value of $4,110, and an estimated service life of five years. The machine is being depreciated on a straight-line basis. At the end of the second year, what amount will be reported for accumulated depreciation? (Do not round your intermediate calculations. Round annual depreciation amount to the nearest dollar amount.) Multiple Choice $2,298 $4,596 $11,004 $6,240arrow_forward3. A certain office equipment has a first cost of P20,000 and a salvage value of P1,000 at the end of 10 years. Determine the book value at the end of 6 years using double declining balance method 4. A machine having a first cost of P60,000 will be retired at the end of 8 years. Depreciation cost is computed using constant percentage of the declining book value. What is the total cost of depreciation, in pesos, up to time the machine is retired if the annual rate of depreciation is 28.72%? notluloaarrow_forwardgenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignment... A A machine with a cost of $50,000 has an estimated residual value of $4,773 and an estimated life of 5 years or 15,353 hours. What is the amount of depreciation for the second full year, using the double-declining-balance method? Oa. $20,000 Ob. $18,091 Oc. $12,000 Od. $10,000 { @ 00arrow_forward
- A machine costing P480,000 is estimated to have a salvage value of 10% of the first cost when retired at the end of 12 years. Depreciation cost using declining balance method. Find the book value at the end of 5 years. P151,789.33 P222,796.26 P192,901.23 O P183,896.76arrow_forwardThe cost basis is $81,000. The useful life is five years with no salvage value. Please provide a depreciation schedule (d, for k = 1- 5) for 200% declining balance with switchover to straight line. Please specify the year to switchover. Determine the depreciation amounts using the 200% declining balance and straight-line methods and BV amounts for each year. (Round to the nearest dollar.) Depreciation SL Method, $ Amount Selected, 200% DB Year BVK Method, $ 1 3 4 Switchover occurs in year LOarrow_forwardA digital display in Carrefour costs 3400 RO, has an estimated life of 10 years, and a salvage value of 800 RO. Find the book value at the end of 4 years, assuming straight line depreciation. Select one: a. 2360 RO b. 2100 RO c. 2880 RO d. 2620 ROarrow_forward
- A manufacturing machine has a first cost of $50 thousand with a $22 thousand salvage value after 11 years. Find the book value at year 6 using simple Declining Balance (DB) Depreciation.arrow_forwardYour company has decided to purchase a special tool with a first cost of $8,500, a salvage value of $1,400, and a useful life of five (5) years. Develop a depreciation schedule using straight line, double declining balance, and sum of years’ digits. What is the value of cell #14?arrow_forward! Required information [The following information applies to the questions displayed below.] On April 1, Cyclone Company purchases a trencher for $288,000. The machine is expected to last five years and have a salvage value of $44,000. Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the straight-line method. Choose Numerator: Year Annual Depreciation First year Second year x × Choose Denominator: Annual Depreciation = Annual depreciation = Fraction of Year = Depreciation Expense = =arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
Accounting for Derivatives_1.mp4; Author: DVRamanaXIMB;https://www.youtube.com/watch?v=kZky1jIiCN0;License: Standard Youtube License
Depreciation|(Concept and Methods); Author: easyCBSE commerce lectures;https://www.youtube.com/watch?v=w4lScJke6CA;License: Standard YouTube License, CC-BY