Q1. What will be the value of accumulated depreciation in the year of 2021?
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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- Getaway Inc. bought a machine on January 1, 2021 for $50,000. Getaway plans to keep the machine for 10 years. What is the machine's carrying value on June 30, 2023 assuming Gateway uses straight-line depreciation?Gateway Inc. bought a machine on January 1, 2021 for $50,000. Gateway plans to keep the machine for 10 years. What is the machine’s carrying value on June 30, 2023 assuming Gateway uses straight-line depreciation? $37,500 $50,000 $40,000 $45,000 $35,000What A company buys a new machine on July 1, 2022, and it is put into use immediately. Purchase price with installation is €132,000. It is assumed that it will be used for 5 years and that the salvage value (salvage value) after 5 years will be €18,000. a) Calculate the annual depreciation based on 1)Straight-line depreciationi 2) double - declining b) will be the charged depreciation for the year 2022, incl. use for six months according to these depreciation methods. What will be the accumulated depreciation and book value at the end of 2023, incl. these two depreciation methods?
- Ranjit Inc. purchases equipment on January 1, 2025 at a cost of $500,000. The equipment has an expected useful life of 10 years and an estimated salvage value of $50,000. The depreciation expense for 2026 using the straight-line depreciation method is [Select] The depreciation expense for 2026 using the sum of the years' digits depreciation method is [Select] The depreciation expense for 2026 using the double-declining depreciation method is [Select]Ariel Company purchased a boring machine on January 1, 2020 for P8,100,000. The useful life of the machine is estimated at three years with a residual value of P600,000. During the useful life, the expected units of production from the machine are 10,000 units for 2020, 9,000 units for 2021 and 6,000 units for 2022. What is the depreciation expense for 2021 using the most appropriate depreciation method?10. PIKACHU purchased an equipment for P540,000 on January 1, 2020. The equipment has an estimated salvage value of P60,000 and estimated useful life of 5 years. The equipment is being depreciated using the sum-of-years digit method. How much is the carrying value of the equipment on December 31, 2021?
- Lemon Company bought a machine on January 1, 2019. The machine cost $72,000 and had an expected salvage value of $12,000. The life of the machine was estimated to be 5 years. Using straight line depreciation, the book value of the machine at the beginning of the third year would be: Select one: a. $48,000 b. $60,000 c. $24,000 d. $36,000Dolores Corporation acquired Machine costing P500,000 on August 1, 2021. The estimated useful life of the equipment is 5 years and its estimated residual value is P20,000. What was the depreciation expense of this machine for the year 2022?On January 1, 2019, Williams Company purchased a copy machine. The machine costs $160,000, its estimated useful life is 8 years, and its expected salvage value is $10,000. What is the depreciation expense for 2020 using double-declining-balance method?
- A consulting company is buying a new computer system for their headquarters for $175,000. The asset has a life of 5 years, and it will be put to service on April 1st 2022. Develop a full depreciation table for this asset according to MACRS (i.e., calculate the deductions allowed for 2022, 2023, 2024, 2025, 2026 and 2027). What is the book value of this asset if it is sold on Sept 1st 2026 and what are the tax implications if it was sold for $30,000. The company is in a 23% tax bracket.Sunland Company bought a machine on January 1, 2022. The machine cost $168000 and had an expected salvage value of $29000. The life of the machine was estimated to be 4 years. The book value of the machine at the beginning of the third year would be $98500. $168000. $69500. $139000.What is the straight line method, Depreciation Expense, accumulation depreciation? What is the umit of activity, depreciation expense and accumulation depreciation for the problem below? October 1, 2020 - purchased a vehicle for $50,000. Its expected salvage value is $700. The estimated useful life is 4 years, and the estimated useful life is 90,000 miles. Oct 1, 2025 - sells the vehicle for $30,000 after driving it for 20,000 miles