Complete using the declining balance method of depreciation (Round to nearest hundredth of a percent) (poperioon Useful Life Yours Straight Line Rate Multiple %/ 921 %/ 150 Multiple / Declining Balance Rate
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- Complete using the declining balance method of deprecation. Round to the Crearest hundreth of a percent when necissary) I nost ZY Useful life years 9 Straight line Rate Multiple of Declining 150 Balance Rate ↑Note: Double Declining Balance = 200% Declining Balance A. How much is the depreciation for year 3? Select one: o a. P158,203.13 o b. P150,000 o c. P210,937.50 o d. P187,500 В. How much is the total depreciation as of year three using DDB method? C. What is the equipment's book value at the end of year three?We are evaluating a project that costs $845,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 51,000 units per year. Price per unit is $53, variable cost per unit is $27, and fixed costs are $950,000 per year. The tax rate is 22 percent, and we require a return of 10 percent on this project. a. Calculate the accounting break-even point. What is the degree of operating leverage at the accounting break-even point? b. Calculate the base-case cash flow and NPV. What is the sensitivity of NPV to changes in the quantity sold? Explain what your answer tells you about a 500-unit decrease in the quantity sold. c. What is the sensitivity of OCF to changes in the variable cost figure? Explain what your answer tells you about a $1 decrease in estimated variable costs. Input area: C. Initial cost Project life Units sales Price/unit Variable cost/unit Fixed costs Tax rate Required return b.…
- Vorst depreciates Asset A on the double-declining-balance method. How much depreciation expense should Vorst record in 2020 for Asset A? a. 32,000 b. 25,600 c. 14,400 d. 6,400Question 11: What argument in the double-declining balance depreciation function may equal zero? Answer: A. O Cost B. O Salvage Value C. O Useful Life D. O Period Copynight 2022 - Labyrih Leaning- AI Rights Reserved ab 49F Mas End PrtSon Home FA & 6. R T Y.Use declining balance depreciation using a rate ΕΟΥ Depreciation Deduction 0 1 2 3 4 5 6 7 8 9 $ $ LA +A $ $ LA $ $ LA $ $ $ 29.333.33 22814.81 17744.86 13801.55 EA $ $ $ LA 2677.39 10732.54 $ 8349.09 $ 6493.74 $ 5050.68 $ Unrecovered Investment $ 102,666.67 7985181 62107.00 48305.44 37570.90 29221.81 22728.07 17677.39 15000.00 Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±10.
- Q 9.47: A larger amount of depreciation is allocated to the earlier years of the asset's useful life than to the later years of the asset's life is a distinguishing feature of which method of depreciation? A Straight-line Units-of-activity Declining-balance Amortization Question Objec O Mark for Review Confidence SUBMIT 17 F8 F9 F10 44 44 %23 %24 & 8. 4 R YCrane Company purchased equipment on March 31, 2021, at a cost of $228,000 Management is considering the merits of using the diminishing balance or units-of-production method of depreciation instead of the straight-line method, which it currently uses for other equipment. The new equipment has an estimated residual value of $4,000 and an estimated useful life of either four years or 80,000 units Demand for the products produced by the equipment is sporadic so the equipment will be used more in some years than in others. Assume the equipment produces the following number of units each year: 14,200 units in 2021:20.200 units in 2022 20,600 units in 2023, 20,000 units in 2024; and 5,000 units in 2025. Crane has a December 31 year end (a) Your answer is partially correct Prepare separate depreciation schedules for the life of the equipment using (Round depreciation per unit to 2 decimal places, es 5.28 and final answers to O decimal places, eg 5.275) Straight line method Year 2021 S 2022…Use declining-balance depreciationUse Double declining balance depreciatinUse double declining balance,switching to straight-line depreciation Provide depreciation and book value for year 7
- Bonita Company purchaseda new plant asset on April 1, 2020, at a cost of $738,000. It was estimated to have a service life of 20 years and a salvage value of $53,400. Bonita' accounting period is the calendar year. Compute the depreciation for this asset for 2020 and 2021 using the sum-of-the-years'-digits method. (Round answers to 0 decimal places, eg. 45,892.) Depreciation for 2020 24 Depreciation for 2021 %24 eTextbook and Media Compute the depreciation for this asset for 2020 and 2021 using the double-declining-balance method. (Round answers to 0 decimal places, eg. 45,892.) Depreciation for 2020 %24On 1 Jan 202O, Company A purchased a vehicle costing $25,000. A certain vehicle upgrade of $3,000 was added with the purchase. Also, a delivery fee of $500 was included in the expense. The company expects the vehicle to be operational for 4 years at the end of which it can be sold for $5,000. Calculate depreciation expense for the year ended 31 Dec 2020, 2021, 2022 and 2023 using the Straight Line and Sum-of-Year's Digits method. Straight Line St Time Depreciation (xx.xx} ($) Book Value (xx.xx} ($) Der 31 [ Select] DecA machine that produces cellphone components is purchased on January 1, 2024, for $112,000. It is expected to have a useful life of four years and a residual value of $10,000. The machine is expected to produce a total of 200,000 components during its life. distributed as follows: 40,000 in 2024, 50,000 in 2025, 60,000 in 2026, and 50,000 in 2027. The company has a December 31 year end. (a) Calculate the amount of depreciation to be charged each year, using each of the following methods: i. Straight-line method Straight-line method depreciation $ per year ii. Units-of-production method (Round depreciation per unit to 3 decimal places, e.g. 15.257 and depreciation expense to 0 decimal places, e.g. 125.) Units-of-production method depreciation S per unit