An asset is purchased for P9,000. Its estimated life is 10 years after which it will be sold for P1,000. Find the book value during the first year if sum of the year's digit (SYD) depreciation is used. Formulas: a) Sum of the years = n(n+1)/2, where n is the useful life b) Depreciation Expense = (Remaining life / Sum of the years digits) x (Cost – Salvage value) c) Book Value for the 1st year = cost –depreciation

An asset is purchased for P9,000. Its estimated life is 10 years after which it will be sold for P1,000. Find the book value during the first year if sum of the year's digit (SYD) depreciation is used. Formulas: a) Sum of the years = n(n+1)/2, where n is the useful life b) Depreciation Expense = (Remaining life / Sum of the years digits) x (Cost – Salvage value) c) Book Value for the 1st year = cost –depreciation

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

See similar textbooks

Similar questions

Using the sum-of-the-years-digits method, how much depreciation expense should Vorst record in 2020 for Asset B? a. 6,000 b. 9,000 c. 11,000 d. 12,000
Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
Using the following formula, calculate the depreciation rate for an asset with an estimated useful life of 10 years for year 1 and 2: Years remaining is Asset's Life/SYD = Depreciation Rate and then you multiple the depreciation rate by the depreciable base to calculate the depreciation expense for that year. * SYD = n(n+1)/2 Year 1 1/10 Year 2 2/10 Year 1 10/55 Year 2 9/55 Year 1 9/55 Year 2 8/55 Year 1 1/55 Year 2 2/55
Consider the following data on an asset:Cost of the asset, I $38,000Useful life. N 6 YearsSalvage value. S $0 Compute the annual depreciation allowances and the resulting book values by using the DOB method and then switching to the SL method.
Consider the following data on an asset:Cost of the asset, I $38.000Useful life. N 6 yearsSalvage value. S $0Compute the annual depreciation allowances and the resulting book values by using the DOB method and then switching to the SL method.
Consider the following data on an asset:Cost of the asset. I $ 120,000Useful life. N 5 yearsSalvage value. S $30.000Compute the annual depreciation allowances and the resulting book valtu.:s.using the following methods:(a) The straight-line depreciation method(b) TI1e declining-balance method
A) Calculate the SYD depreciation charges for year 2 for electro-optics equipment with B = 25,000SR, S = 4000SR, and an 8-year recovery period. B) An asset has a first cost of 100,000SR with 20,000SR salvage value after 5 years: Calculate the annual depreciation and compute the book value of the asset by the end of each year using straight line depreciation.
An asset will cost $1,750 when purchased this year. It is further expected to have a salvage value of $250 at the end of its five-year depreciable life. Calculate complete depreciation schedules giving the depreciation charge, D(n), and end-of-year book value, B(n), for straight-line (SL), sum of the years digits (SOYD), double declining balance (DDB), and modified accelerated cost recovery (MACRS) depreciation methods. Assume a MACRS recovery period of 5 years.
An asset costs $19,000. At a depreciation rate of 20 percent, calculate its book value using declining-balance method. a. After one year b. After two years c. After six years a. The book value after one year is $ . (Round to the nearest dollar as needed.)
A certain equipment has a first cost of P 12,000 and a salvage value of P 500 at the end of x years. What is the value of x if the annual depreciation is P 1,437.5 using the Straight Line Method?
An asset has a first cost of Rs. 48,000 with an estimated life of 20 years. What is the total accumulated depreciation charge during the first 5 years of the asset life if it is depreciated according to DDB Method?
An asset owned by PT X has the following information: initial cost = $10,000, depreciation life = 5 years, and S (salvage value) = 0. Use the SL and Te = 48% methods to tabulate CFAT. Gross income minus expenses is $5000 per year. The asset has a salvage value at year 6 of $3075. Assume income and expenses have the same value up to one year after the end of their depreciation period.