Calculate the annual depreciation rate: RCN - $500,000, Sale price - $455,000, Effective age - 8 years, Site Value - $25,000 1.75% 14.00% 16.28% 2.03%
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- onsider the following data on an asset:Cost of the asset, I $235,000Useful life, N 5 yearsSalvage value, S $ 60,000Compute the annual depreciation allowances and theresulting book values, using(a) The straight-line depreciation method.(b) The double-declining-balance methodConsider 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 methodFrom the following facts, for straight-line depreciation, what is: Given: Cost - $ 35,000 Residual Value $ 15,000 Est. . useful life 4 Required: Yearly depreciation
- 7.2. Calculate the annual depreciation at 16% per year over five years on new equipment which was purchased at R180 000 (cost price) by using the reducing balance method. End of year 1 2 3 4 5 Annual Depreciation Accumulated Depreciation Book valueCalculate the 4th year annual depreciation charge value if the depreciation life is 6 years, cost of asset is 900$ and salvage value is 70$ using the Sum-of-Year Digits Depreciation rule. Select one: a. 110$ b. 119$ c. 125$Compute the 175% DB depreciation schedule for an asset with the followingdata:Cost of the asset, I $25,000Useful life, N 5 YearsSalvage value, S $3,000(a) What is the value of a?(b) What is the amount of depreciation for the first full year of use?( c) What is the book value of the asset at the end of the fourth year?
- Prepare a depreciation table for an asset that was bought at P150,000 and estimated to be useful for a period of 7 years. Estimated salvage value is 10% of its original cost. Money is worth 10% CA. Year Initial book value Depreciation Total Depreciation Book value - Year 1 - Initial Book value 150,000A building acquired at the beginning of the year at a cost of $1,630,000 has an estimate residual value of $340,000 and an estimate life of 10 years. Determine the following. a. The depreciable cost $ b. The straight line rate % c. The annual straight line depreciation $I am using MACRS for depreciation. Purchase date: September 1st Cost: $650,000 Salvage: $30,000 Life: 7 years What percent do I use to calculate depreciation for years 1-8?
- Prepare a depreciation table for an asset that was bought at P150, 000 and estimated to be useful for a period of 7 years. Estimated salvage value is 10% of its original cost. Money is worth 10% CA. Year Initial Book Value Depreciation Total Depreciation Book Value 1 150, 000 2A motorized cultivator with a first cost of $28,000 and salvage value of 25% of the first cost is depreciated by the DDB method over a 5-year period. If the operating cost is $43,000 per year, the depreciation charge for year 2 is closest to:a. $18,000b. $11,200c. $6700d. $4030A building acquired at the beginning of the year at a cost of $1,630,000 has an estimated residual value of $340,000 and an estimated useful life of 10 years. Determine the following. a. The depreciable cost $fill in the blank 1 b. The straight-line rate fill in the blank 2 % c. The annual straight-line depreciation $fill in the blank 3