Question

Depreciation show work please If the cost of an asset = $100,000 and in the first...

Depreciation

show work please

If the cost of an asset = $100,000

and in the first year that the asset was used, depreciation on the asset taken was $25000, What is the accumulated depreciation on the asset and what is its net book value??

What makes depreciation unique from other expenses on the income statement?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Accumulated depreciation = $25,000

Net book value = $100,000 - $25,000

Net book value = $75,000

Depreciation on income statement is NON CASH expense. Unlike fixed or material costs, there is no actual money going out for depreciation. To calculate free cash flow using income statement, we always add back depreciation since there is no actual cash being paid out.

Add a comment
Know the answer?
Add Answer to:
Depreciation show work please If the cost of an asset = $100,000 and in the first...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • depreciation If the cost of an asset = $100,000 and in the first year that the asset was used, depreciation on the asset...

    depreciation If the cost of an asset = $100,000 and in the first year that the asset was used, depreciation on the asset taken was $25000, What is the accumulated depreciation on the asset and what is its net book value?? What makes depreciation unique from other expenses on the income statement?

  • Requirements 1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated...

    Requirements 1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value. 2. Speedway prepares financial statements using the depreciation method that reports the highest net income in the early years of asset use. Consider the first year that Speedway uses the truck. Identify the depreciation method that meets the company's objectives. Print Done Requirement 1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation,...

  • Depreciation by Two Methods; Sale of Fixed Asset New tire retreading equipment, acquired at a cost...

    Depreciation by Two Methods; Sale of Fixed Asset New tire retreading equipment, acquired at a cost of $140,000 at the beginning of a fiscal year, has an estimated useful life of four years and an estimated residual value of $10,000. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected In the first week of the fourth...

  • Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of...

    Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of $562,500 on March 1 of Year 1 (beginning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $48,400. The manager requested Information regarding the effect of alternative methods on the amount of depreciation expense each year. On March 4 of Year 5, the equipment was sold for $82,400. Required: 1. Determine the annual depreciation expense...

  • Computing Depreciation, Asset Book Value, and Gain or Loss on Asset Sale Sloan Company uses its...

    Computing Depreciation, Asset Book Value, and Gain or Loss on Asset Sale Sloan Company uses its own executive charter plane that originally cost $800,000. It has recorded straight line depreciation on the plane for six full years, with a $80,000 expected salvage value at the end of its estimated 10 year useful life. Sloan disposes of the plane at the end of the sixth year a. At the disposal date, what is the (1) accumulated depreciation and (2) net book...

  • Thomas Enterprises purchased a depreciable asset on October 1. Year 1 at a cost of $100,000....

    Thomas Enterprises purchased a depreciable asset on October 1. Year 1 at a cost of $100,000. The asset is expected to have a salvage value of $15,000 at the end of its five-year useful life. If the asset is depreciated on the double-declining balance method, the asset's book value on December 31, Year 3 will be: $18.360 O $21,600 $32,400 $90,000 $27.540 Lomax Enterprises purchased a depreciable asset for $22.500 on March 1, Year 1 The asset will be depreciated...

  • Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of...

    Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of $875,000 on March 1 of Year 1 (beginning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $75,300. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On March 4 of Year 5, the equipment was sold for $128,100. Required: 1. Determine the annual depreciation expense...

  • Check my work Harbor Division has total assets (net of accumulated depreciation) of $720,000 at the...

    Check my work Harbor Division has total assets (net of accumulated depreciation) of $720,000 at the beginning of year 1. One of the assets is a machine that has a net book value of $61,000. Expected divisional income in year 1 is $87,000 including $5,000 in income generated by the machine (after depreciation). Harbor's cost of capital is 11 percent. Harbor is considering disposing of the asset today (the beginning of year 1). points Skipped eBook Required: a. Harbor computes...

  • The difference between the cost of a depreciable asset and its related accumulated depreciation is referred...

    The difference between the cost of a depreciable asset and its related accumulated depreciation is referred to as the: a. market value of the asset. b. blue book value of the asset. c. book value of the asset. d. depreciated difference of the asset. 26.

  • Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of...

    Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of $718,750 on March 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $61,800. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected. In the first week of...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT