5. On October 1, 2017, Marc Enterprises bought a brand new computer on account in an invoice amount of P95,000. Cost of freight and installation was 15,000. The estimated useful life of computer is 5 years and a scrap value of P10,000 at end of its life. a. How much is the acquisition cost? b. How much is the annual Depreciation? c. How much depreciation expense should be recorded on December 31, 2017?

5. On October 1, 2017, Marc Enterprises bought a brand new computer on account in an invoice amount of P95,000. Cost of freight and installation was 15,000. The estimated useful life of computer is 5 years and a scrap value of P10,000 at end of its life. a. How much is the acquisition cost? b. How much is the annual Depreciation? c. How much depreciation expense should be recorded on December 31, 2017?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
6.A company acquired a new minicomputer system for RM50,000 on I November 2014. The computer's estimated useful life is five years, at the end of which it is expected to have a scrap value of RM4,550. The company's financial year ends on 31 March and straight-line depreciation is applied on a time-apportioned basis. What is the depreciation charge on the computer in statement of profit or loss for the year ended 31 March 2015? a) RM9,090 b) RM10,000 c) RM4,167 d) RM3,788
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[The following information applies to the questions displayed below.] NewTech purchases computer equipment for $267,000 to use in operating activities for the next four years. It estimates the equipment’s salvage value at $25,000. rev: 07_27_2017_QC_CS-94103 Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation.
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