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- What is the value of an asset after 8 years of use if it depreciates from its original value of 120,000 to its salvage value of 3% in 12 years?A piece of machinery costs P50,000 and has an anticipated P8,000 salvage value at the end of its six-year depreciable life. What is its depreciated value at the end of 4 years? Use sum-of-years digits depreciation.An equipment costing 50,000 has a book value of 4,000 after 8yrs. The depreciation is computed by using the constant percentage of the declining book value. Compute for the salvage value after 12 years.
- 3. An asset initially costs P55,000.00 and a salvage value P5,000.00 after 11 years. What is the book value after eight years using straight-line depreciation method?A new piece of equipment, with a life of eight years, costs $12000 to purchase. The end of life salvage value is $2000. What is the annual decrease in value with straight line (SL) depreciation?Consider the following data on an asset: • Cost of the asset = $38,000 • Useful life = 6 years • Salvage value = $5,000 Compute the annual depreciation allowances and the resulting book values using a 150% declining balance method. Make sure that the last year's book value equals to the salvage value.
- 5. The price of a system of jockey pumps is P5,500,000. PLM decided to purchase this system and spent P215,500 for shipping and installation. The equipment will last for 10 years with a salvage value of 3% of its total cost. Determine the following: a. Yearly charge of depreciation using SL method. b.Depreciation charge on the 6thyear, and book value at the end of the 8thyear using SYD method.What is the value of an asset after 8 years of use if it depreciates from its original value of P105,000 to its salvage value of 3% in 12 years using SLM?A construction equipment costs 700,000 pesos and will have a salvage value of 30% of its original cost when retired at the end of 4 years. What is the first year’s depreciation cost? Use sum of years digit method.
- The value of a piece of equipment depreciates exponentially. It cost $250,000 new. Each year it depreciates at a rate of 11% of its original purchase price. Determine the value of this equipment after 5 years. Round to the nearest dollar. ANS 8)A machine costing P 720,000 is estimated to have a book value of P 40, 545.73 when retired at the end of 10 years. Depreciation cost is computed using a constant percentage of the declining value. What is the book value after 3 years?An asset costs $260,000 and is classified as a ten-year asset. What is the annual depreciation expense for the first three years under the straight-line and the modified accelerated cost recovery systems of depreciation? Be sure to apply the half-year convention to straight-line depreciation. Use Exhibit 9.4 to answer the question. Round your answers to the nearest dollar. Straight-line depreciation: Year 1 2 3 Accelerated cost recovery system of depreciation: Year 1 2 Depreciation expense $ 3 Depreciation expense $ AA