You have bought an asset which costs $15,000. You depreciate it using the Straight Line Depreciation method. If salvage value for the asset is $3,000, and the asset’s useful life is 3 years, what is the annual depreciation?
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You have bought an asset which costs $15,000. You
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- You have just bought a new pusher dozer for your equipment fleet. Its cost is $100,000. It has salvage value of $12,000 at the end of its service life. a) Calculate the depreciation using the straight-line method. Show the table with the book value and the depreciation for each year. b) Calculate the depreciation using the DDB method. Show the table with the book value and the depreciation for each year. c) The new pusher dozers $35,000/year for your company during its service life. Determine the tax amount owed at the end of each year if your marginal tax rate is 25% for the income made using this new equipment. Perform this tax calculation separately, once using straight-line depreciation and then using DDB depreciation. d) Based on your calculations for part (c), which depreciation method would you use to file the taxes.Suppose you purchase a tangible asset with a book value of $700,000. The salvage value is $ 100,000. The useful life of the asset is 30 years. How much accumulated depreciation will there be (assume that you're using the "straight line" amortization method) after 10 years?A depreciable asset has a cost of P120,000, estimated useful life of 8 years, and an estimated residual value of P20,000.1. What is the depreciation rate if you are using the straight line method?2. What is the depreciation rate if you are using 150% declining balance method?3. What is the depreciation rate if you are using double declining balance method?Note: For nos. 1 to 3, the rate must be rounded off to two decimal places. Ex: 10.00%, 12.30%, 15.55%4. What is the depreciation rate if you are using the declining balance method?Note: For no. 4, the rate must be rounded off to 6 decimal places. Ex: 10.123456%5. Using SYD method, what is the depreciation expense for the 1st year?6. Using SYD method, what is the carrying amount at the end of the 6th year?7. Using double declining balance method, what is the carrying amount at the end of the 3rd year? Subparts 4-5 only
- A depreciable asset has a cost of P120,000, estimated useful life of 8 years, and an estimated residual value of P20,000.1. What is the depreciation rate if you are using the straight line method?2. What is the depreciation rate if you are using 150% declining balance method?3. What is the depreciation rate if you are using double declining balance method?Note: For nos. 1 to 3, the rate must be rounded off to two decimal places. Ex: 10.00%, 12.30%, 15.55%4. What is the depreciation rate if you are using the declining balance method?Note: For no. 4, the rate must be rounded off to 6 decimal places. Ex: 10.123456%5. Using SYD method, what is the depreciation expense for the 1st year?6. Using SYD method, what is the carrying amount at the end of the 6th year?7. Using double declining balance method, what is the carrying amount at the end of the 3rd year?A piece of machinery costs P50,000 and has an anticipated P8,000 salvage value at the end of its six-year depreciable life. Using straight line method, what is the annual cost of depreciation?If Ricky Padilla uses the straight-line method to depreciate an asset, depreciation expense will be P6,000 per year. The estimated life is 6 years and the residual value is P6,000. Compute the depreciation expense for the second year if Ricky uses the sum-of-the-years-digits depreciation method instead of the straight-line method.
- Your plant manager wants you to buy a new lathe for $410000. The lathe should be useful to your company for 8 years at which point you plan to replace. The estimated salvage value at the end of the useful life is $20000. Using straight line depreciation what is the Book value when the asset is sold?A van costs $25,000 and has an expected life of 6 years, with a salvage value (Residual Value) of $1,500. Using straight-line depreciation, what is its value after 3 years? *Using straight-line depreciation, what is the book value after 2 years for an asset costing $152700 that has a salvage value of $32600 after 10 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.Based on the straight-line method, determine the depreciation table for a mini-van that you bought for $35,000. [The expected salvage price after five years is $10,000.] If you sold the car after two years for $20,000, how much gain (or loss) will you make?A machine, purchased for$50,000, has a depreciable life of five years. It will have an expected salvage value of $4,500 at the end of the depreciable life. Find the yearly depreciation, Book value every year using the following methods. If the machine has a capacity of 50,000 units for its life span. What is the depreciation and book value if the machine produces 20,000 units, 15,000 units, 10,000 units, 3,000 units and 2,000 units yearly from year 1 to 5 accordingly.