Question

A surface mount placement machine is being purchased for $1576000; it has an estimated useful life...

A surface mount placement machine is being purchased for $1576000; it has an estimated useful life of 8 years and a salvage value of $58900 at that time. Determine the depreciation allowance for the 5th year and the book value at the end of the 5th year using Declining Balance where the depreciation rate is determined by the salvage value and time in service. what is the depreciation rate?

%

d5 = $

B5 = $

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Depreciation rate = 1/number of years ago *2 =1/8*2 = 25%

Depreciation year 1 =1576000*25%=394000

Book value year 1 = 1576000-394000= 1182000

Depreciation year 2=1182000*25%= 295500

Book value year 2= 1182000-295500 = 886500

Depreciation year 3= 886500*25%=221625

Book value year 3 = 886500-221625 =664875

Depreciation year 4= 664875*25%=166219

Book value year 4 = 664875-166219 = 498656

Depreciation year 5 = 498656*25%=124664

Book value year 5 =498656-124664 =373992

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A surface mount placement machine is being purchased for $1631000; it has an estimated useful life...
A surface mount placement machine is being purchased for $1631000; it has an estimated useful life of 8 years and a salvage value of $63800 at that time. Determine the depreciation allowance for the 5th year and the book value at the end of the 5th year using Declining Balance where the depreciation rate is determined by the salvage value and time in service. what is the depreciation rate?  % d5 = $   B5 = $
A surface mount placement machine is being purchased for $1465000; it has an estimated useful life...
A surface mount placement machine is being purchased for $1465000; it has an estimated useful life of 8 years and a salvage value of $90400 at that time. Determine the depreciation allowance for the 5th year and the book value at the end of the 5th year using Declining Balance where the depreciation rate is determined by the salvage value and time in service. what is the depreciation rate?  % d5 = B5 =
A surface mount placement machine is being purchased for $1986000; it has an estimated useful life...
A surface mount placement machine is being purchased for $1986000; it has an estimated useful life of 8 years and a salvage value of $90000 at that time. Determine the depreciation allowance for the 5th year and the book value at the end of the 5th year using Double Declining Balance. what is the depreciation rate?  % d5 = $   B5 = $
You purchased a molding machine at a cost of $88,000. It has an estimated useful life...
You purchased a molding machine at a cost of $88,000. It has an estimated useful life of 12 years with a salvage value of $8,000. What is the 10 year depreciation for this machine computed by the double declining balance method? PLease show formulas used. Will rate. Thanks a) 6,667 b) $4,012. c) $8,488. d) $3018.
You purchased a molding machine at a cost of $88,000. It has an estimated useful life...
You purchased a molding machine at a cost of $88,000. It has an estimated useful life of 12 years with a salvage value of $8,000. What is the 10 year depreciation for this machine computed by the double declining balance method? A-$6,667 B-$4,012 C-$8,488 D-$3,411
A $400,000 investment in a surface mount placement machine produces pre-tax revenue of $47980/yr for 10...
A $400,000 investment in a surface mount placement machine produces pre-tax revenue of $47980/yr for 10 years, at which time the SMP machine has a salvage value of $100,000. Based on a 25% income tax rate, a 12% after tax MARR, & SLN depreciation, what will be the ATPW (After Tax Present Worth) of the investment?
In year 6, Spirit, Inc. determined that the 12‐year estimated useful life of a machine purchased...
In year 6, Spirit, Inc. determined that the 12‐year estimated useful life of a machine purchased for $48,000 in January year 1 should be extended by three years. The machine is being depreciated using the straight‐line method and has no salvage value. What amount of depreciation expense should Spirit report in its financial statements for the year ending December 31, year 6? A. $2,800 B. $3,200 C. $43,200 D. $4,800 i need the specific solution
Part A. On January 2, 2019, a machine was purchased for $180,000. It has an estimated...
Part A. On January 2, 2019, a machine was purchased for $180,000. It has an estimated useful life of ten years and an estimated residual value of $14,000. The company uses the declining-balance method of depreciation with a declining balance rate of 20%. Depreciation expense for 2019 = $________________________.    Depreciation expense for 2020 = $_________________________.
A machine with a 4-year estimated useful life and an estimated 15% salvage value was acquired...
A machine with a 4-year estimated useful life and an estimated 15% salvage value was acquired on January 1, year 1. The increase in accumulated depreciation for year 2 using the double-declining balance method would be Original cost × 85% × 50%. Original cost × 50%. Original cost × 50% × 50%. Original cost × 85% × 50% × 50%.
A machine that cost $400,000 has an estimated residual value of $40,000 and an estimated useful...
A machine that cost $400,000 has an estimated residual value of $40,000 and an estimated useful life of four years. The company uses double-declining-balance depreciation. Required: 1. Calculate the machine's depreciable cost. 2. Calculate the machine's depreciation expense for each year. 3. Calculate the machine's accumulated depreciation and book value at the end of each year.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT