A plant bought a new equipment for P220,000and used it for 10 years, the life span of the equipment. What is the book value of the equipment after 5 years using straight line method? Assume a scrap value of P22,000.
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A plant bought a new equipment for P220,000and used it for 10 years, the life span of the equipment. What is the book value of the equipment after 5 years using
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- Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. With DEPREC5 still on the screen, click the Chart sheet tab. This chart shows the accumulated depreciation under all three depreciation methods. Identify below the depreciation method that each represents. Series 1 _____________________ Series 2 _____________________ Series 3 _____________________ When the assignment is complete, close the file without saving it again. Worksheet. The problem thus far has assumed that assets are depreciated a full year in the year acquired. Normally, depreciation begins in the month acquired. For example, an asset acquired at the beginning of April is depreciated for only nine months in the year of acquisition. Modify the DEPREC2 worksheet to include the month of acquisition as an additional item of input. To demonstrate proper handling of this factor on the depreciation schedule, modify the formulas for the first two years. Some of the formulas may not actually need to be revised. Do not modify the formulas for Years 3 through 8 and ignore the numbers shown in those years. Some will be incorrect as will be some of the totals. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as DEPRECT. Hint: Insert the month in row 6 of the Data Section specifying the month by a number (e.g., April is the fourth month of the year). Redo the formulas for Years 1 and 2. For the units of production method, assume no change in the estimated hours for both years. Chart. Using the DEPREC5 file, prepare a line chart or XY chart that plots annual depreciation expense under all three depreciation methods. No Chart Data Table is needed; use the range B29 to E36 on the worksheet as a basis for preparing the chart if you prepare an XY chart. Use C29 to E36 if you prepare a line chart. Enter your name somewhere on the chart. Save the file again as DEPREC5. Print the chart.
- Montezuma Inc. purchases a delivery truck for $20,000. The truck has a salvage value of $8,000 and is expected to be driven for ten years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After five years of recording depreciation, Montezuma determines that the delivery truck will be useful for another five years (ten years in total, as originally expected) and that the salvage value will increase to $10,000. Determine the depreciation expense for the final five years of the assets life, and create the journal entry for years 6–10 (the entry will be the same for each of the five years).A plant bought a calciner for P220,000 and used it for 10 years, the life span of the equipment. What is the book value of the calciner after 5 years of use? Assume a scrap value of P22,000 for declining balance method.A new CNC machine is purchased for $40,000. The salvage value of the CNC machine is expected to be 15% of the initial cost. The CNC machine qualifies for 3-year GDS MACRS depreciation. What is the book value of the CNC machine after two years of depreciation?
- A plant bought a calciner for P22,000 and used it for 10 years, the life span of the equipment. What is the book value of the calciner after 5 years of use? Assume a scrap value of P20,000 for straight line method; P22,000 for textbook declining balance method and P20,000 for the double declining balance method.An engineer bought equipment for P500,000. HE spent an additional amount of P30,000 for installation and other expenses. The estimated useful life of the equipment is 10 years. The salvage value is x% of the first cost. Using Straight line method of depreciation the book value at the of 5 years will be P291,500. What is the value of x? 16.60 12.00 10.00 14.50The initial cost of a paint sand mill, including its installation is P 700,000.00 . The BIR approved life of this machine is 19 years of depreciation. The estimated salvage value if the mill os P 8,000.00 and the cost of dismantling is estimated to be P 5,000.00 . Using straight line depreciation, what is the book value of the machine at the end of 6 years?
- The cost of the printing equipment is P500,000 and the cost of handling and installation is P30,000. If the book value of the equipment at the end of the 3rd year is P242,000 and the life of the equipment is assumed to be 5 years, determine the salvage value of this equipment at the end of 5 yearsAn engineer bought equipment for P500,000. He spent an additional amount of P30,000 for the installation and other expenses. The estimated useful life of the equipment is 10 years. The salvage value is X% of the first cost. Using the straight line-method of depreciation, the book value at the end of 5 years will be P291,500. What is the value of X?A drilling machine may be used to dig ditches. The contractor purchased it for P200k & estimates that it will be able to dig 750k meters during its life and he expects to receive 10% as scrap value when he sells it. What if during a certain year he used the machine to dig 150k meters of trench, determine depreciation cost for that year.
