XYZ Inc. has purchased a piece of equipment for $26,000. The equipment will be depreciated straight-line over 6 years to a salvage value of $5,000. Compute the annual depreciation expense
Q: Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is…
A: Straight Line Method is a method where the Depreciable cost of an Assets is charged uniformly over…
Q: The Upjohn Company purchased new packaging equipment with an estimated useful life offive years. The…
A: Depreciation: It refers to a gradual reduction in the fixed asset’s value over its estimated useful…
Q: Montello Inc. purchases a delivery truck for $14,000. The truck has a salvage value of $2,000 and is…
A: 1. DEPRECIABLE VALUE : = COST - SALVAGE VALUE = $14,000 - $2,000 = $12,000 2. DEPRECIATION…
Q: Plummer Industries purchased a machine for $43,800 and is depreciating it with the…
A: Given: Cost of machine purchased = $ 43,800 Depreciation life = 8 years Residual value = $ 3,000…
Q: Millar, Inc., purchased a truck to use for deliveries and is attempting to determine how…
A: Depreciation is an indirect non-cash expenditure incurred on the reduction in book values of…
Q: At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $170,000. It is…
A: Depreciation means the amount fixed assets written off due to normal wear and tear , normal usage ,…
Q: depreciation to be charged against the machine during each of the remaining years of its useful…
A: Accounting for change in accounting estimate is envisaged in IAS 8 It is pertinent to note that the…
Q: Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is…
A: Depreciation (double-declining-balance) = Original cost * Double Declining Depreciation rate…
Q: Equipment was purchased for $75,000. Freight charges amounted to $3,500 and there was a cost of…
A: Initially Property Plant & Equipment are recorded at cost , which includes the purchase price of…
Q: A building was purchased on August 1 for $490,000. It has a salvage value of $38,000 and a useful…
A: The depreciation is a decline in the value of tangible assets over their useful life. it is a…
Q: Three years ago a machine was purchased for $5,000. Assuming a ten-year life and straight-line…
A: Depreciation is loss in the value of asset over its useful life. straight line depreciation formula:…
Q: Mohr Company purchases a machine at the beginning of the year at a cost of $34,000. The machine is…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: A chemical plant purchased a $ 167,147 machine that has a useful life of 7 years. If the machine has…
A: Depreciation is the deduction for the wear and tear of an asset. In the case of straight-line…
Q: Kobi Technologies book-depreciated an asset at $27,500 per year for four years using the straight…
A: Salvage value can be computed using the following formula: Depreciation amount=Initial cost-Salvage…
Q: An engineer bought equipment for P500,000. He spent an additional amount of P30,000 for installment…
A: The value at which an asset can be sold at the end of its useful life is known as the salvage value.…
Q: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is…
A: Formula used: Straight line method depreciation = ( Asset cost - Salvage value ) / Useful life
Q: Lacey Company purchased a depreciable asset for $440,000. The estimated salvage value is $20,000,…
A: Depreciation is the decrease in value of assets due to its obsolete condition ,wear and tear…
Q: Jones Company purchased a machine for $400,000. The company expects the service life of the machine…
A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…
Q: NewTech purchases computer equipment for $154,000 to use in operating activities for the next four…
A:
Q: NewTech purchases computer equipment for $267,000 to use in operating activities for the next four…
A: SOLUTION: Straight line method of depreciation: Under this method, a fixed percentage on the…
Q: A building was purchased for $400,000 and depreciated for 10 years on a straight-line basis under…
A: Depreciation formula as per straight-line basis: Annual depreciation=Cost-Salvage valueUseful Life
Q: Majaan International, purchased equipment for $500,000 which was estimated to have a useful life of…
A: Calculation of depreciation using Straight line method To calculate the depreciation which know the…
Q: The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the…
A: Value of asset=Total Depreciation+Residual value=$2,080,000+$50,000=$2,130,000
Q: Cyber Manufacturing purchased a complete video borescope system for applications that require work…
A:
Q: Concord Corporation constructed a building at a cost of $13650000. Weighted-average accumulated…
A: Assets: Assets are the resources of an organization used for the purpose of business operations.…
Q: JIG Company has an equipment costing $1,000,000 with an estimated residual value of $100,000 and an…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: Marigold Company acquires a delivery truck at a cost of $79,000. The truck is expected to have a…
A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/5 years) x 2 = 40%
Q: Finx, Inc., purchased a truck for $35,000. The truck is expected to be driven 15,000 miles per…
A: Depreciation: It refers to a gradual decrease in the fixed asset’s value because of obsolescence,…
Q: Marissa's company recently purchased a depreciable asset for $190,000. The estimated salvage value…
A: Depreciation is an outlay reported in the books of a business entity to report the regular usage of…
Q: Mount Vernon Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000…
A: Straight line depreciation is a method of depreciation where the cost is allocated on the basis of…
Q: Monster Inc. purchased a machine for $100,000 and depreciated it on a straight-line basis over a…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Bob Co purchased a building for $50,000 and began depreciating assuming a salvage value of $5,000…
A: Depreciation Expense = Cost of asset - Salvage valueuseful life When salvage value is $ 5,000 and…
Q: The first cost of a machine is Php 1,800,000 with a salvage value of Php 300,000 at the end of its…
A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…
Q: Q: Finx, Inc., purchased a truck for $35,000. The truck is expected to be driven 15,000 miles per…
A: Determination of depreciation
Q: Company D recently purchased an equipment that costs $50,000, has a life of 4 years and a salvage…
A: In this we need to find out depreciation based on the number of units.
Q: Flint Company acquires a delivery truck at a cost of $48,000. The truck is expected to have a…
A: Step1: Calculating the annual value of depreciation expenses for the first year using the…
Q: Wilson, Inc., purchased a truck to use for deliveries and is attempting to determine how…
A: In this Numerical has Covered the Concept of Depreciation Accounting.There are many methods of…
Q: A building which was constructed for Php 1,000,000 has an estimated life of 15 years and a salvage…
A: Depreciation is a sort of outlay which has to be reported by the entity for recording the regular…
Q: [The following information applies to the questions displayed below.] NewTech purchases computer…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: A company purchased an equipment costing $60,000. The equipment has guaranteed useful life of 16…
A: The formula for Depreciation as per the sinking fund method: Dt = ( A-S ) ( 1 + j )( t - 1 ) / Sn|j…
Q: The Apex Company purchased a tooling machine for $30,000. The machine was being depreciated on the…
A: Under the straight line method, depreciation expense each year = (cost - salvage value) / useful…
Q: An engineer bought an equipment for P 800,000. Other expenses, including installation, amounted to P…
A: depreciation is the decrease in value of the asset over its life dues to constant usage and wear and…
Q: Millar, Inc., purchased a truck to use for deliveries and is attempting to determine how much…
A: Straight line method of depreciation charge depreciation equally over the useful life of the assets;…
Q: An asset was purchased for $78,000 and originally estimated to have a useful life of 10 years with a…
A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…
Q: Corales Company acquires a delivery truck at a cost of $38,000. The truck is expected to have a…
A: Straight line method of depreciation: This is one of the methods to calculate the depreciation on…
Q: A new vehicle was purchased on January 1 for $42,000. It has a salvage value of $9,000 and a useful…
A: Under the straight-line method: Annual depreciation = (Original cost - Salvage value) / Useful life
Q: cheba construction company acquired a new crane for 360,000$ at the beginning of year 1. the crane…
A: Under straight line method, depreciation remains same every year. Depreciation under straight line…
Q: [The following information applies to the questions displayed below.] NewTech purchases computer…
A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…
XYZ Inc. has purchased a piece of equipment for $26,000. The equipment will be
Formulas:
Depreciation = (Cost of equipment - salvage value) / life
Step by step
Solved in 2 steps
- 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 ten years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.
- 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 the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.Urquhart Global purchases a building to house its administrative offices for $500,000. The best estimate of the salvage value at the time of purchase was $45,000, and it is expected to be used for forty years. Urquhart uses the straight-line depreciation method for all buildings. After ten years of recording depreciation, Urquhart determines that the building will be useful for a total of fifty years instead of forty. Calculate annual depreciation expense for the first ten years. Determine the depreciation expense for the final forty years of the assets life, and create the journal entry for year eleven.Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value at the time of purchase was $15,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. Calculate annual depreciation expense for the first four years. Determine the depreciation expense for the final fifteen years of the assets life, and create the journal entry for year five.
- 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 $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After three years of recording depreciation, Montezuma determines that the delivery truck will only be useful for another three years and that the salvage value will increase to $4,000. Determine the depreciation expense for the final three years of the assets life, and create the journal entry for year four.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. Dunedin buys equipment frequently and wants to print a depreciation schedule for each assets life. Review the worksheet called DEPREC that follows these requirements. Since some assets acquired are depreciated by straight-line, others by units of production, and others by double-declining balance, DEPREC shows all three methods. You are to use this worksheet to prepare depreciation schedules for the new machine.
- The following intangible assets were purchased by Hanna Unlimited: A. A patent with a remaining legal life of twelve years is bought, and Hanna expects to be able to use it for six years. It is purchased at a cost of $48,000. B. A copyright with a remaining life of thirty years is purchased, and Hanna expects to be able to use it for ten years. It is purchased for $70,000. Determine the annual amortization amount for each intangible asset.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).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?