A business buys a machine for £60,000 and depreciates it at 10% per annum by the reducing instalment method. What is the depreciation charge for the second year of the machine’s use? A £4,800 B £4,860 C £5,400 D £6,000
Q: Consider an asset with a cost basis of $10,000 that has been depreciated using 100% bonus…
A: The bonus deduction allows deducting 100% of the cost in the first year instead of different years…
Q: A piece of equipment costs ₱355,000 including shipping, installation and taxes. The supplier assures…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: depreciated on the reducing-balance
A: Year Opening book value (A) Depreciation (B =A * 40%) Closing book value or NBV (A - B) 1 RM41,000…
Q: Tory Enterprises pays $239,400 for equipment that will last five years and have a $43,700 salvage…
A: Depreciation: It refers to the gradual fall in the market value of the asset by its normal usage,…
Q: An equipment has a carrying amount of $85,000 at the year end of 31 March 20X9. Its market value is…
A: solution concept working note recoverability test if carrying value is greater than recoverable…
Q: An equipment costs P10,000 with a salvage value of P500 at the end of 10 years. Calculate the annual…
A: Sinking Fund Depreciation Method: It is possible to depreciate an asset while simultaneously earning…
Q: To package its products, a company purchased an automatic packaging machine for P600,000. Freight,…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: A piece of equipment was purchased for $1, 200 and depreciated on a straight-line basis to $140 over…
A: Under the straight-line method of depreciation, the fixed asset is depreciated with an equal amount…
Q: Company A purchases P200,000 of equipment in year zero. It decides to use straight line depreciation…
A: Calculate the depreciation tax shield on an annual basis and then compute the present value of tax…
Q: A company purchases a new asset for $400,000. It has a useful life of 8 years with a $80,000 salvage…
A: Explanation : Net Present value ( NPV) is that technique under capital budgeting which help for…
Q: A piece of equipment costs ₱365,000 including shipping, installation and taxes. The supplier assures…
A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…
Q: Tiffany bought a piece of equivalent for $40,000. The equipment has a useful life of 5 years ane a…
A: Answer) Calculation of Depreciation expense for Year 1 Depreciation expense for year 1 = Original…
Q: A piece of equipment costs ₱378,000 including shipping, installation and taxes. The supplier assures…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: A company purchases an asset for P10,000.00 and plans to keep it for 20 years. If the salvage value…
A: Asset price = P 10000 Useful life (n) = 20 years Salvage value = 0
Q: A company purchases a machine with an expected useful life of 6 years for $9,000. After two years of…
A: Purchase price of machine = $9,000 Depreciation = 30% on reducing balance method The machine is sold…
Q: Assume the cost of a company’s long-term asset is $20,000, expected salvage value is $1,000, and…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: A company purchases a piece of equipment for $50,000. The company estimates a useful life of 10…
A: Depreciation as per straight line method each year = ( Purchase price of equipment - salvage…
Q: An equipment costing P250, 000 has an estimated life of 15 years with a book value of P30, 000 at…
A: Under diminishing balance method depreciation method , depreciation is charged at a fixed percentage…
Q: A machinery costs of 1000,000 and its economic lite is 5 years. It charges depreciation at 20% per…
A: Depreciation is the steady decrease in the reported value of an item throughout its useful life by…
Q: Churchill Ltd. purchases an asset for $150,000. This asset qualifies as a five-year recovery asset…
A: Allocation of the cost of the asset over the useful life of that asset is term as depreciation. It…
Q: A company has purchased an asset for $188,341. If they require a return of 12.78%, how much must…
A: Value of asset after 6 years will be calculated using Future Value formula. Future value = Present…
Q: An asset has a cost of $100,000. It is to be depreciated using 3-year MACRS depreciation rates. The…
A: given, cost of asset = $100,000 depreciation = 3 years MACRS life of asset = 3 years salvage value…
Q: A business buys a machine for £120,000 on 1 January 1993 and another one on 1 July 1993 for…
A: We have the following information: Machine 1 Date of Purchase: January 1, 1993Cost of Machine:…
Q: An asset with a first cost of $300,000 is depreciated by the MACRS method using a 5-year recovery…
A:
Q: 0,000 per year. Wh
A: Concept Under straight Line method, same amount of depreciation is charged on the Asset in each of…
Q: b) A motor vehicle is purchased for ugx 15,000,000 and is to be sold off after 5 years. What is the…
A: Annual Depreciation=Purchase value×Rate=15,000,000×9%=1,350,000
Q: A machine having a first cost of P60,000.00 will be retired at the end of 8 years. Depreciation cost…
A: Under the declining balance method, depreciation is charged on the reduced book value that is at the…
Q: A machine has a carrying amount of $85,000 at the year end of 31 March 20X9. Its market value is…
A: An asset is impaired when the accounting value of the asset is higher than the value of its…
Q: A broadcasting corporation purchased equi pment worth P57, 000 and paid P1, 500 for freight and…
A: Answer a) Calculation of Annual Depreciation Cost Annual Depreciation Cost = (Purchase price +…
Q: Gene’s business bought a machine for £72,000 on 1 January 2000 and another one for £96,000 on 1st…
A: We have the following information: Machine 1Date of Purchase: January 1, 2000Cost: $72,000 Machine…
Q: A certain car was purchased for $25,00 has a resale value of $16,000 after a uset years. What is the…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: Based on this information the payback period is:
A: Annual cash flow=Depreciation+Net income =(10000+5000)=$15000
Q: 1. An article costing P10,000 depreciates to P600 in 12 years. What is the annual depreciation?
A: Comment- We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: An equipment costs P8,000 has an economic life of 8 years and salvage value of P400 at the end of 8…
A: Equipment Costs = P8,000 Time Period = 8 Years Salvage Value = P400 1st Year Depreciation Amount =…
Q: Consider a piece of equipment that costs $60,000. The estimated salvage value after six years is…
A: Double Declining Balance Method the depreciation is computed by the formula: DDB = 2Useful life of…
Q: Proton Company purchased a new equipment on a deferred payment basis. A down payment of P50,000 was…
A: Capitalization cost is the total amount spent on the asset to make the asset put to use. It includes…
Q: An equipment has a total depreciation of P35,000 at the end of first year. If the First cost is…
A: Double declining method is a method of calculating accelerated depreciation in which the…
Q: ABC’s property originally cost £300,000. After 10 years use it was revalued by £200,000. This…
A: Original Cost = 300000 Depreciation @ 2% 10 Years Depreciation = 300000*2%*10 = 60000
Q: If the cost of the truck is OMR 30,000 and the annual depreciation expense OMR 2,000. How much will…
A: Book Value = Cost of Truck - Depreciation Expense
Q: Ellison & Partners bought machinery for £300,000 on 1 January 1995, and have depreciated it at 10%…
A: We have the following information: Date of purchase of the machinery: January 1, 1995 Cost of the…
Q: Amotor vehicle which cost £30,000 Is depreciated at 20% per annum using the reducing balance method.…
A: Under reducing balance method, depreciation is computed on the net value of the asset; that is, on…
Q: Alisa Trading owns machinery that costs MYR 80,000. It is the policy of the business to charge…
A: DEPRECIATION CHARGE : = ( COST OF ASSET - ESTIMATED RESIDUAL VALUE ) / ESTIMATED USEFUL LIFE OF…
Q: An equipment is bought for OMR 20,000 and its depreciation is charged at 10% per annum (p.a.) at…
A: Depreciation at the end of first year = cost of the assets x arte of depreciation
Q: United Ltd purchases a company car for £198,000 plus VAT at 17.5%. The car is expected to have a…
A: We have the following information: Cost of the car: $198,000 plus VAT @17.5% Useful life of the…
Q: 1. An equipment costs P100,000 with a salvage value of P5,000 at the end of 10 years. Calculate the…
A: Depreciation is referred to as the reduction in the book value of the fixed assets due to natural…
Q: A machine costs P 8,000 which last for 7 years with a salvage value at the end of its life of P 355.…
A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…
Q: NUBD Co. purchase a machine for P180,000, which will be depreciated on the straight-line basis over…
A: Calculation of present value of cash Inflows:::: AAnnual cash flows::P40,000 Less: Depreciation…
Q: If an asset cost €27,000 and the annual depreciation charge calculated using the straight-line…
A: Every fixed asset loses its value over a period of time. Depreciation is charged to record a…
Q: A piece of machinery costs P50,000 and has an anticipated P8,000 salvage value at the end of its…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
A business buys a machine for £60,000 and depreciates it at 10% per annum by the
reducing instalment method. What is the
the machine’s use?
A £4,800
B £4,860
C £5,400
D £6,000
Step by step
Solved in 2 steps
- ABC’s property originally cost £300,000. After 10 years use it was revalued by £200,000. This building is depreciated at 2% per annum. Calculate annual depreciation charges following the revaluation.Gene’s business bought a machine for £72,000 on 1 January 2000 and another one for £96,000 on 1st July 2000. Depreciation is charged at 10% per annum straight line and calculated on a monthly basis. What is the total depreciation charge for the two machines for the year ended 31 December 2000? A £6,000 B £8,400 C £12,000 D £16,800An equipment is bought for OMR 20,000 and its depreciation is charged at 10% per annum (p.a.) at written down value method. How much is the amount of depreciation at the end of the first year? a. OMR 2,000 b. OMR 20,000 c. OMR 10,000 d. OMR 1,000
- A business buys a machine for £120,000 on 1 January 1993 and another one on 1 July 1993 for £144,000. Depreciation is charged at 10% per annum on cost, and calculated on a monthly basis. What is the total depreciation charge for the two machines for the year ended 31 December 1993? A £13,200 B £19,200 C £21,600 D £26,400KM 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. £37,200JK Builders Co purchases a new excavator costing £40,000. Its expected useful life is ten years, at which point it is anticipated that the excavator will have a residual value of £6,000. If the straight-line method of depreciation is used, what is the carrying amount of the excavator at the end of four years? O A. £29,800 B. £26,400 O C. £13,600 O D. £24,000
- An asset has a cost of $100,000. It is to be depreciated using 3-year MACRS depreciation rates. The life of the asset is 3 years. The asset can be sold for $5,000 at the end of its life. Calculate the amount of profit or loss on the sale of the asset. A. Loss of $4,000 B. Loss of $2,410 C. Profit of $5,000 D. Profit of $2,410$ 1045 washing machine in a laundromat is depreciated for tax purposes at a rate of $ 95 per year. Write a function for the depreciated value of the washing machine as it varies with times, where V is the depriciated value of the washing machine in dollars, and t is the number of years since the purchase date How many years will the depreciated amount get to 0A piece of equipment costs ₱355,000 including shipping, installation and taxes. The supplier assures a salvage value of ₱19,000 after 20 years. Using the Sum-of-the-Years Digits method, what is the depreciation charge during the 5th year?
- A non-current asset costing €2,000 was acquired at the start of year 1. It is being depreciated straight line over four years, resulting in annual depreciation charges of €500. Thus a total of €2,000 of depreciation is being charged. The income tax rate is 25%. The capital allowances (=’tax depreciations’) granted on this asset are: Year 1 €800 Year 2 €600 Year 3 €360 Year 4 €240 Assume that the pretax accounting income is €10.000 each of the following four years. Required: Calculate the deferred tax account, assuming: 1. Data as presented above 2. Data as above but asset is being revalued at the end of year 2 by €1.500. 3. Data as above but the asset is being impaired at the end of year 2 by €800Ellison & Partners bought machinery for £300,000 on 1 January 1995, and have depreciated it at 10% per annum by the reducing instalment method. What is the depreciation charge for the year ended 31 December 1997? A £21,870 B £24,300 C £27,000 D £30,000Economics A company purchased a piece of equipment for $175,000 and sells it after 3 years. The equipment is depreciated by the MACRS method using a five-year period. The annual maintenance cost of the equipment is $3,000. If the equipment is sold at end of 3 years for a value of $100,000, what will be the taxes that has to be paid from the sale of the equipment? Assume that the tax rate is 35%. O $6790 O $11480 O $8136 O No taxis to be paid