The cost of an asset is $1,070,000, and its residual value is $220,000. Estimated useful life of the asset is ten years. Calculate depreciation for the first year using the double-declining-balance method of depreciation. (Do not round any intermediate calculations, and round your final answer to the nearest dollar.) $107.000

The cost of an asset is $1,070,000, and its residual value is $220,000. Estimated useful life of the asset is ten years. Calculate depreciation for the first year using the double-declining-balance method of depreciation. (Do not round any intermediate calculations, and round your final answer to the nearest dollar.) $107.000

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 3CE

See similar textbooks

Similar questions

The straight-line method Question: Cost $134,400 Estimated Residual Value $12,500 Estimated Useful Life (in years) 4 Estimated Useful Life (in working hours) 11,500 I'm doing the straight-line method for a particular question I asked earlier, I'm noticing that the depreciation expense isn't equal to the asset’s depreciable amount (When I multiply the Depreciable Amount x Depreciation Rate, 100/4 = 25%). I did all the steps, $134,400 - $12,500 = $121,900 (Depreciable Amount) $121,900/4 = $30,475 (Annual Depreciation Expense). Year Depreciation x Amount Depreciation Rate = Depreciation Expense Accumulated Depreiciation Carrying Amount 2023 $121,900 25% 30,475 2024 121,900 25% 30,475 2025 121,900 25% 30,475 2026 121,900 25% 30,475 2027 121,900 25% 30,475
18 Your company purchased an asset with a total cost of $1,000,000. The asset has an expected useful life of 10 years. The asset also has an expected residual value of $100,000. Please prepare the depreciation amounts for the first 3 years of the asset’s life using Straight-Line Method and Double Declining Balance methods. Please detail the depreciation amount and the ending book value for each year
vision of Depreciation A building with a cost of $540,000 has an estimated residual value of $216,000, has an estimated useful life of 18 years, and is depreciated by the straight-line method. a. What is the amount of the annual depreciation?$fill in the blank 1 b. What is the book value at the end of the tenth year of use?$fill in the blank 2 c. If at the start of the eleventh year it is estimated that the remaining life is 10 years and that the residual value is $150,000, what is the depreciation expense for each of the remaining 10 years?$fill in the blank 3
Question: A company XYZ has purchased a new CNC Machine which has a cost basis of $5,000 and 8-year depreciable life. The estimated salvage value of the machine is zero at the end of 8 years. Use the Declining Balance method to calculate the annual depreciation amounts when R = 1.5/N (150% DB method). Tabulate the annual depreciation amount and Book Value for each year. (Solve question handwritten on white page clean and neat)
Question 23 options: 8-9. Disposal of asset. Sellem, Inc. is disposing of office furniture it has had for 2 ½ years. The cost of the furniture was $10,000, and Sellem estimated the salvage to be $2,000. A four-year life was expected. (in all answers round to nearest dollar; do not use "$" or commas in your answer) Calculate the amount of annual depreciation on the asset. Calculate the amount of accumulated depreciation on the asset at the time of disposal. Calculate the book value of the asset at the time of disposal.
Question: A company XYZ has purchased a new CNC Machine which has a cost basis of $5,000 and 8-year depreciable life. The estimated salvage value of the machine is zero at the end of 8 years. Use the Declining Balance method to calculate the annual depreciation amounts when R = 1.5/N (150% DB method). Tabulate the annual depreciation amount and Book Value for each year. (Solve question on white page and neat)
29 Assume that you have purchased an asset for OMR 10000 and expecting the useful life of 10 years. If you have charged the total depreciation of OMR 8000 over its useful life, calculate the residual value of the asset. a. OMR 20000 b. OMR 8000 c. OMR 2000 d. OMR 18000
Use the following data: Asset cost $120,000 Expected life 4 years Estimated salvage value $12,000 Using the sum-of-the-years-digit method, the amount of depreciation for the third year would be Question 12 options: $28,000. $21,600. $30,000. $48,600.
QUESTION 6 If an asset is book depreciated by the DDB (Double Declining Balance) method over a 5-year period, how long will it take to reach its salvage value if the estimated salvage is 24% of the first cost? The time taken to reach the estimated salvage value, (in years) Round off to the nearest three (3) decimal places
4 Construct the annual depreciation charge of an equipment purchased at a cost of P7,535,000 using double-dedining balance method if the estimated useful life is 10 years. determine also the estimated scrap value.
Question text A machine was purchased for $125,000. It is expected to have a life of 6 years. What is the carrying amount of the machine after 3 years using the diminishing balance for tax depreciation method? Select one a. $41,667 b. $62,500 C. $37,043 d. $83,333
Asset Cost $56,000 Salvage value 1,000 Life 10 years Depreciation method Straight Line What is the depreciation in year 3? What would the depreciation in year 4 be if at the beginning of the year we think that the total asset life will be only 8 years instead of 10 years?