express all numbers as percentages of purchase price, and assume no residual value. For example, in...
Homework Answers
Let the purchase cost be 100% .Under straight line method ,Depreciation expense = 1/ useful life
= 1/5
= .20 or 20%
| YEAR | DEPRECIATION EXPENSE | BOOK VALUE |
| 0 | 100% | |
| 1 | 20% | 100-20 =80% |
| 2 | 20% | 80-20=60% |
| 3 | 20% | 60-20 =40% |
| 4 | 20% | 40-20 =20% |
| 5 | 20% | 20-20 =0 |
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express all numbers as percentages of purchase price, and assume
no residual value. For
example, in...
Iuary 2, 2018, Jatson Corporation acquired a new was $50,000 with an estimated residual value of...
Iuary 2, 2018, Jatson Corporation acquired a new was $50,000 with an estimated residual value of $5.000 w machine with an estimated useful life of five years. ated useful life of five years. The cost of the equipmu a-1. Prepare a Tepare a complete depreciation table under the straight-line mein a-2. Prepare a complete deprecia taken in 2018. e a complete depreciation table under the 200 percent declining. a-3. Prepare a come pare a complete depreciation table under the 150...
Revision of Depreciation Equipment with a cost of $899,100 has an estimated residual value of $89,100,...
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A building with a cost of $585,000 has an estimated residual value of $117,000, has an...
A building with a cost of $585,000 has an estimated residual value of $117,000, has an estimated useful life of 36 years, and is depreciated by the straight-line method. a. What is the amount of the annual depreciation? $ b. What is the book value at the end of the twentieth year of use? $ c. If at the start of the twenty-first year it is estimated that the remaining life is 20 years and that the residual value is...
Accounting Fall 2019 Group Exercise 5 Changing an asset's useful life and residual value Senodal Industries...
Accounting Fall 2019 Group Exercise 5 Changing an asset's useful life and residual value Senodal Industries uses straight-line depreciation on all of its depreciable assets. The company records annual depreciation expense at the end of each calendar year. On January 11, 2014, the company purchased a machine costing $90,000. The machine's useful life was estimated to be 12 years with an estimated residual value of $18,000. Depreciation for partial years is recorded to the nearest full month. In 2018, after...
a. Compute residual income, using net book value for each year. b. Compute residual income, using...
a. Compute residual income, using net book value for each
year.
b. Compute residual income, using gross book value for each
year.
Problem 14-57 (Algo) Compare Historical, Net Book Value to Gross Book Value, Residual Income (LO 14-3, 5) The Ste. Marie Division of Pacific Media Corporation just started operations. It purchased depreciable assets costing $65 million and having a four-year expected life, after which the assets can be salvaged for $13 million. In addition, the division has $65 million...
managerial accounting Example Old New $390,000 Purchase Price Book value Current disposal value Salvage value Useful...
managerial accounting
Example Old New $390,000 Purchase Price Book value Current disposal value Salvage value Useful Life Depreciation Working capital $ 40,000 $ 6,500 S 0 5 years $ 8,000 $ 6,000 % 0 5 years $ 78,000 $15,000 Income tax rate -40% Required Rate of Return = 8% Before-tax operational cash savings: $120,000 in year 1 through 4 $105,000 in year 5 1. Initial Cash Flows Price of new machine $390,000 After-tax Cash Flow from Current Disposal of Old...
An equipment was acquired at the cost of $210,000has an estimated residual value of $24,000 and...
An equipment was acquired at the cost of $210,000has an estimated residual value of $24,000 and an estimated useful life of 10 years. It was placed into service on May 1" of the current fiscal year. Which end on December 31". 1. Determine the depreciation for the current year and the following year using: a. Straight-line method Year Depreciable Rate Annual Partial Current Year Accumulated Book Cost (SL) Depreciation | Year Depreciation Depreciation Value Expense Expense b. Double-Declining method Year...
Problem 2: An equipment was acquired at the cost of $210.000has an estimated residual value of...
Problem 2: An equipment was acquired at the cost of $210.000has an estimated residual value of $24,000 and an estimated useful life of 10 years. It was placed into service on May 1st of the current fiscal year. Which end on December 31 1. Determine the depreciation for the current year and the following year using a. Straight-line method Year Depreciable Cost X Rate* (SL) Depreciation Expense Accumulated Depreciation Book* Value b. Double-Declining method Year Declining Balance Beginning Book Value...
Revision of Depreciation A building with a cost of $375,000 has an estimated residual value of...
Revision of Depreciation A building with a cost of $375,000 has an estimated residual value of $150,000, has an estimated useful life of 9 years, and is depreciated by the straight-line method. a. What is the amount of the annual depreciation? Do not round intermediate calculations. $ b. What is the book value at the end of the fifth year of use? $ c. If at the start of the sixth year it is estimated that the remaining life is...
years or 87,500 units of production, and its residual value is $6,000. Under three depreciation methods,...
years or 87,500 units of production, and its residual value is $6,000. Under three depreciation methods, the uipment is" Suppos ltion cn nd the balance of accumulated denreciation at the end of 2018 and 2019 are EE(Click the icon to view the data.) Read the requirements. Requirement 1. Identify the depreciation method used in each instance, and show the equation and computation for each; round t the nearest dollar. Begin by identifying the depreciation method used in each instance Depreciation...
Iuary 2, 2018, Jatson Corporation acquired a new was $50,000 with an estimated residual value of $5.000 w machine with an estimated useful life of five years. ated useful life of five years. The cost of the equipmu a-1. Prepare a Tepare a complete depreciation table under the straight-line mein a-2. Prepare a complete deprecia taken in 2018. e a complete depreciation table under the 200 percent declining. a-3. Prepare a come pare a complete depreciation table under the 150...
Accounting Fall 2019 Group Exercise 5 Changing an asset's useful life and residual value Senodal Industries uses straight-line depreciation on all of its depreciable assets. The company records annual depreciation expense at the end of each calendar year. On January 11, 2014, the company purchased a machine costing $90,000. The machine's useful life was estimated to be 12 years with an estimated residual value of $18,000. Depreciation for partial years is recorded to the nearest full month. In 2018, after...
a. Compute residual income, using net book value for each
year.
b. Compute residual income, using gross book value for each
year.
Problem 14-57 (Algo) Compare Historical, Net Book Value to Gross Book Value, Residual Income (LO 14-3, 5) The Ste. Marie Division of Pacific Media Corporation just started operations. It purchased depreciable assets costing $65 million and having a four-year expected life, after which the assets can be salvaged for $13 million. In addition, the division has $65 million...
managerial accounting
Example Old New $390,000 Purchase Price Book value Current disposal value Salvage value Useful Life Depreciation Working capital $ 40,000 $ 6,500 S 0 5 years $ 8,000 $ 6,000 % 0 5 years $ 78,000 $15,000 Income tax rate -40% Required Rate of Return = 8% Before-tax operational cash savings: $120,000 in year 1 through 4 $105,000 in year 5 1. Initial Cash Flows Price of new machine $390,000 After-tax Cash Flow from Current Disposal of Old...
An equipment was acquired at the cost of $210,000has an estimated residual value of $24,000 and an estimated useful life of 10 years. It was placed into service on May 1" of the current fiscal year. Which end on December 31". 1. Determine the depreciation for the current year and the following year using: a. Straight-line method Year Depreciable Rate Annual Partial Current Year Accumulated Book Cost (SL) Depreciation | Year Depreciation Depreciation Value Expense Expense b. Double-Declining method Year...
Problem 2: An equipment was acquired at the cost of $210.000has an estimated residual value of $24,000 and an estimated useful life of 10 years. It was placed into service on May 1st of the current fiscal year. Which end on December 31 1. Determine the depreciation for the current year and the following year using a. Straight-line method Year Depreciable Cost X Rate* (SL) Depreciation Expense Accumulated Depreciation Book* Value b. Double-Declining method Year Declining Balance Beginning Book Value...
years or 87,500 units of production, and its residual value is $6,000. Under three depreciation methods, the uipment is" Suppos ltion cn nd the balance of accumulated denreciation at the end of 2018 and 2019 are EE(Click the icon to view the data.) Read the requirements. Requirement 1. Identify the depreciation method used in each instance, and show the equation and computation for each; round t the nearest dollar. Begin by identifying the depreciation method used in each instance Depreciation...
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