On January 1, 2003, Superior Landscaping Company paid P17,000 to buy a stump grinder. If Superior uses the grinder to remove 2,500 stumps per year, it would have an estimated useful life of 10 years and a salvage value of P4,500. The amount of depreciation expense for the year 2003, using units-of-production depreciation and assuming that 3,500 stumps were removed, is?
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- Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.
- The initial cost of a paint sand mill, including its installation, is P800,000. The BIR approved life of this machine is 10 years for depreciation. The estimated salvage value of the mill is P50,000 and the cost of dismantling is estimated to be P15,000. Using the straight line depreciation, what is the annual depreciation charge ? Select the correct response: 86000 76500 86500 76000Ten years ago, a contractor was able to purchase a crane whose capacity is 2000 tons costing P125 per ton. The life was estimated to be 15 years with a salvage value of 10% of the cost. A market has been found for the old crane for P80,000. If the depreciation has been figured on a straight line basis what is the difference between the depreciation book value of the old crane and its sale value. Final answer should be P20,000An automated assembly robot that cost $352,000 has a depreciable life of 5 years with a $85,000 salvage value. The MACRS (Modified Accelerated Cost Recovery System) depreciation rates for years 1, 2, 3, and 6 are 20.00%, 32.00%, 19.20%, and 5.76%, respectively. What is the book value at the end of year 3? Year 5? Year 6? The book value at the end of year 3 is $ . The book value at the end of year 5 is $ . The book value at the end of year 6 is $ .
- Albertus Natural Stone Quarry purchased a computer-controlled face-cutter saw for $80,000. The unit has an anticipated life of 5 years and a salvage value of $10,000. (a) Compare the schedules for annual depreciation and book value using two methods: DB at 150% of the straight line rate and at the DDB rate. (b) How is the estimated $10,000 salvage value used?The initial cost of a paint sand mill, including its installation is P 700,000.00 . The BIR approved life of this machine is 19 years of depreciation. The estimated salvage value if the mill os P 8,000.00 and the cost of dismantling is estimated to be P 5,000.00 . Using straight line depreciation, what is the book value of the machine at the end of 6 years?LLED has purchased a new chip making machine for $1,500,000 with a salvage value of $100,000in 10 years. The LLED company is trying to determine the best method of depreciation. Create atable and calculate the deprecation amount for each year using straight line, double decliningbalance, and MACRS (10 yr property class). For SL and DDB we will not depreciate below thesalvage value. Using a MARR of 10% calculate the present worth of the depreciation deductions.Which is the preferred method of depreciation for LLED?
- A xerox machine was purchased 7 years ago costs P50,000. After making 600,000 copies, the salvage value of the machine is P5,000. The machine is going to be replaced now with a new high technology xerox machine costs P65,000. How much new additional capital is needed if the old machine just made 400,000 copies. Use the service output method in computing the depreciation.LLED has purchased a new chip making machine for $1,500,000 with a salvage value of $100,000 in 10 years. The LLED company is trying to determine the best method of depreciation. Create a table and calculate the deprecation amount for each year using straight line, double declining balance, and MACRS (10 yr property class). For SL and DDB we will not depreciate below the salvage value. Using a MARR of 10% calculate the present worth of the depreciation deductions. Which is the preferred method of depreciation for LLED?A solar panel unit has been purchased by a company for electricity back up. The solar unit costs P70,000 alone. Additional payment of P5,000 pesos has been made for shipment and P3,000 for installation. a. if the unit has an expected life of 12years, what is annual depreciation cost by the straight-line(SL)depreciation method. The salvage value was estimated at P5000at the end of unit’s life. b.Using sinking fund method, determine the annual depreciation cost. It is assumed that the annual charge for depreciation was deposited in a fund with a 6% compounded monthly.