Question

COM use P7-03 (ECE Board, February 1976) A machine, which costs P10,000 was sold as scrap after beina used for 10 years: If t
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Depreciation per Year = (P-S) / N = (10000 - 500) / 10 = 9500 / 10 = 950

Total depreciation at the end of 5 yrs = 950 * 5 = 4750

Add a comment
Know the answer?
Add Answer to:
COM use P7-03 (ECE Board, February 1976) A machine, which costs P10,000 was sold as scrap...
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
  • solution and answer to all the posted problems complete solution 186 p7-06 N. A dump ap 15 years was replaced The...

    solution and answer to all the posted problems complete solution 186 p7-06 N. A dump ap 15 years was replaced The equip sold now tion met a) DEPRECIATION AND DEPLETION 7-20 SUPPLEMENTARY PROBLEMS 27-01 (RCE Board, August 1975) You are planning to sell your electronic manufact originally costing P250,000 when it was put 1 Some equipment originally costing F10,000 was e years ago with new equipment Couting 715,000. installed 10 years ago has now depreciated by 27.5 depreciation of the...

  • Salalah Mills Ltd. purchases machinery which costs RO 20,000. The useful life of the machine is...

    Salalah Mills Ltd. purchases machinery which costs RO 20,000. The useful life of the machine is 9 years and the annual rate of depreciation is 6% per annum, depreciation being calculated on WDV method. After 9 years, the existing machine has to be replaced by a new one which will cost 250% more than the book value of the existing machine at that time. a) If company sells existing machine at scrap value, What is the extra amount the company...

  • solution and answer to all the posted problems complete solution DEPRECIATION AND DEPLETTON 5. Board, September...

    solution and answer to all the posted problems complete solution DEPRECIATION AND DEPLETTON 5. Board, September 192 was bought for po 30.000 six years ago. It will p.06 (N. . um truck value of 3.000 four years from now. It 15 P8,000. What is the sunk cost1f the deprecia e salvage ad now for Pe method used is: straight-Line method? sinking fund method at 612 Sink 07 (N.E. Board television co It is estin yours scrap val, working hours of...

  • Your firm needs a computerized machine tool lathe which costs $41,000 and requires $11,100 in maintenance...

    Your firm needs a computerized machine tool lathe which costs $41,000 and requires $11,100 in maintenance for each year of its 3-year life. After three years this machine will be replaced. The machine falls into the MACRS 3-year class life category and neither bonus depreciation nor Section 179 expensing can be used. Assume a tac rate of 21 percent and a discount rate of 11 percent. If the lathe can be sold for $4,100 at the end of year 3...

  • 3.) Turtle Company purchased a machine for $49,600 and incurred an additional $2,456 in costs necessary...

    3.) Turtle Company purchased a machine for $49,600 and incurred an additional $2,456 in costs necessary for installation and setup of the machine. The machine is expected to last for 5 years or 175,560 machine-hours. At the end of the machine's useful life, it can be scrapped for an estimated $774. The machine was used for 37,665 machine-hours in the first year and 46,939 machine-hours in the second year, calculate the machine's book value after two years of depreciation expense...

  • I need help determining the present value of the costs for machine A. Esquire Company needs...

    I need help determining the present value of the costs for machine A. Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two types of machines that would be appropriate are presently on the market. The company has determined the following: Machine A could be purchased for $49887. It will last 10 years with annual maintenance costs of $1191 per year. After 10 years the machine can be sold for $5101. Machine B could...

  • Your firm needs a computerized machine tool lathe which costs $55.000 and requires $12.500 in maintenance...

    Your firm needs a computerized machine tool lathe which costs $55.000 and requires $12.500 in maintenance for each year of its 3- this machine will be replaced. The machine falls into the MACRS 3-year class life category, and neither bonus depreciation nor Section 179 expensing can be used. Assume a tax rate of 21 percent and a discount rate of 13 percent. If the lathe can be sold for $5,500 at the end of year 3. what is the after-tax...

  • Multiple-Choice Exercise 7-1 Anniston Company purchased equipment and incurred the following costs: Purchase price $52,000 Cost...

    Multiple-Choice Exercise 7-1 Anniston Company purchased equipment and incurred the following costs: Purchase price $52,000 Cost of trial runs 750 Installation costs 250 Sales tax 2,600 What is the cost of the equipment? Oa. $52,000 Ob. $54,600 Oc. $54,850 Od. $55,600 Multiple-Choice Exercise 7-2 The cost principle requires that companies record tangible capital assets at: Oa. fair value. Ob. book value. Oc. historical cost. d. market value. Multiple-Choice Exercise 7-3 When depreciation expense is recorded each period, what account is...

  • Chapter 8 Net Present Value/Uncertain Cash Flows Tiger Computers, Inc., of Singapore is considering the purchase o...

    Chapter 8 Net Present Value/Uncertain Cash Flows Tiger Computers, Inc., of Singapore is considering the purchase of an automated etching machine for us production of its circuit boards. The machine would cost $800,000. An additional $550,000 would be required for installation costs and for software. Management believes that the automated machine wou provide substantial annual reductions in costs, as shown below: Labor costs Material costs Annual Reduction in Costs $140,000 $96,000 The new machine would require considerable maintenance work to...

  • Integrative Investment decision Holday Manufacturing is considering the replacement of an existing machine. The new machine...

    Integrative Investment decision Holday Manufacturing is considering the replacement of an existing machine. The new machine costs $1.27 million and requires installation costs of $153,000. The existing machine can be sold currently for $193,000 before taxes. It is 2 years old, cost $794,000 new, and has a $381,120 book value and a remaining useful life of 5 years. It was being depreciated under MACRS using a 5-year recovery period EE and therefore h the final 4 years of depreciation remaining....

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