Which of the following must be true in order to use the units-of-production method of depreciation? Production is constant over the life of the asset. Obsolescence is expected. Total units to be produced can be estimated. Repair costs increase with use.
Q: The units-of-production method of depreciation charges a varying amount of depreciation expense for…
A: Depreciation represents the reduction in the value of an asset over a useful life of the asset. It…
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Q: The difference between cost of the asset and residual value is known as a . Depletion b . Salvage…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: The depreciation method in which the depreciable cost of an asset is apportioned equally over its…
A: The depreciation is a decline in the value of tangible assets over their useful life. it is a…
Q: What factor must be present to use the units-of-production (activity) method of depreciation?
A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear. There are…
Q: What is the systematic periodic transfer of the cost of a fixed asset to an expense account during…
A: It is a measure of the wearing out, consumption or other loss of value of depreciable asset arising…
Q: The cost of an asset that is subject to depreciation is called a.depreciable cost. b.trade-in…
A: Depreciable cost is that portion of cost of asset which can be depreciated. Trade in value relates…
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Q: The units-of-production method of depreciation charges a varying amount of expense for each period…
A: Depreciation expense based on the units-of-production method charges the depreciation for each based…
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A: Composite Rate= Total Annual Depreciation for All AssetTotal Cost of All Asset Composite Life=…
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A: Depreciation by straight line method = (cost of the assets -salvage value) / useful life of the…
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A: Introduction: Depreciation refers to two aspects of the same concept: first, the actual decrease in…
Q: There are many terminologies used to describe the process of distributing the cost of an item over…
A: The Answer
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A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its…
Q: Which depreciation method results larger depreciation expense in the early years of an asset's life…
A: Which depreciation method results larger depreciation expenses in the early years of an asset's life…
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Q: Which of the following will maximize net income by minimizing depreciation expense in the first year…
A: In the first year of asset's life, depreciation expense can be minimised by maximising net income by…
Q: An estimate of how an asset will be used up over its useful life is known as what? a.…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: hich of the following statement best describes depreciation? a. It is a means of spreading the…
A: Explanation:Depreciation isn't the result of fluctuations within the value of fixed assets since,…
Q: Which of the following depreciation methods can NOT depreciate an asset below its salvage value?…
A: Solution: As per GAAP, asset can not be depreciated below its salvage value.
Q: The units-of-production method of depreciation charges a varying amount of expense for each period…
A: Answer:- TRUE Under this method of depreciation, the amount of depreciation charged to expense is…
Q: The depreciation method that produces larger depreciation expense during the early years of an…
A: Any depreciation technique that allows for the recording of larger depreciation expenditures in…
Q: Which method of depreciation is suitable when expenditure on repairs and maintenance, increases as…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: Depreciation can be defined as the measure of cost or revalued amount of economic benefits of a…
A: Depreciation can also be defined as: It records the usage of a fixed asset over a period of time and…
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A: The answer is option (3.) [ i.e, the historical cost less any accumulated depreciation and any…
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A: Hey, since there are multiple questions posted, we will answer first question. If you want any…
Q: In computing depreciation, salvage value is which of the following? subtracted from accumulated…
A: Definition: Salvage value: Projected resale value of an asset, at the time of useful life. It is…
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A: Depreciation :- The monetary value of an asset decreases over time due to use, wear and tear or…
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A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its…
Q: All of the following factors are considered in determining the useful life of an asset except:…
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Q: The process of transferring the cost of an asset to an expense account over time is called A)…
A: 1. The correct option is option “D” D. Depreciation Depreciation: Depreciation refers to the…
Q: The difference between the purchase cost of an asset and its value at the end of the life is known…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: Blueprint Connection: Depreciation Methods Depreciation is the process of allocating the cost of an…
A: Depreciation is the wear and tear of an asset. Depreciation is an expense that is allocated based on…
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A: Depreciation is charged on assets for reducing their value which is a result of the use of the asset…
Q: Which of the following is considered an accelerated depreciation method? Multiple Choice…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: Which of the following is true? a.If using the units-of-output method, it is possible to depreciate…
A: Depreciation is an expense which is charged on fixed asset over the useful life of an asset, there…
Q: In calculating depreciation, both plant asset cost and useful life are based on estimates.
A: Answer
Q: Which of the following best describes depreciation? A It is a means of spreading the payment for the…
A: Depreciation represents how much asset's value has been used and charge the same as expense in the…
Q: Which of the following statements is (are) correct?a. Accumulated depreciation represents a cash…
A: Depreciation: Depreciation is the process of reduction in the cost of Asset due to use and wear and…
Q: Reproduction value is the A. Estimate of cost of reproducing, creating , developing or manufacturing…
A: Answer A is correct Explanation:- Reproduction value is the estimate of cost of reproducing,…
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Q: Why are the cost of plant/long term assets recovered through depreciation vs. expensed out during…
A: Answer : The fixed assets are long-run assets. they assist within the production of goods and…
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- Consider each of the following projects: Accounting Unit Unit Variable Project Break-Even Price Cost Alpha 95,200 $49 $33 Beta Zeta 110,000 5,235 ? 115 41 ? (Click to select)# Fixed Costs Depreciation $748,000 ? 2,700,000 182,000 $950,000 115,000 Required: (a)Find the depreciation for Project Alpha. (Do not round your intermediate calculations.) (Click to select) + (b)Find the unit price for Project Beta. (Do not round your intermediate calculations.) (Click to select) (c)Find the unit variable cost for Project Zeta. (Do not round your intermediate calculations.).Calculate the conventional benefit-cost ratio for the alternative: Initial Investment 150000 Revenues 50000 Costs 20000 Salvage Value 50000 Useful life 10 MARR 0.1 Select one: a. 1.2114 b. 1.3130 c. 1.4659 d. 1.3681 e. 1.2960Calculate the modified benefit-cost ratio for the alternative: Initial Investment Cost : 350000 Revenues : 150000 Costs : 55000 Salvage : 120000 n : 7 MARR : 0.1 a.1.4599 b.1.4101 c.1.6035 d.1.7354 e.1.6480
- A piece of production equipment is to be replaced immediately because it no longer meets quality requirements for the end product. The two best alternatives are a used piece of equipment (E1) and a new automated model (E2). The economic estimates for Alt E1 Alt E2 Capital Investment PhP 14,000 PhP 65,000 Aппual Expenses 14,000 9,000 each are shown in the accompanying table. Useful Life (years) 5 20 Market Value (at the end of useful life) 8,000 13,000 The MARR is 15% per year. Which alternative is preferred, based on the (a) coterminated assumption with a five-year study period and an imputed market value for Alternative b? Use FW. ANSWER: FW (E1) = PhP Blank 1 FW (E2) = PhP Blank 2 The best alternative is EBlank 3S A firm is considering three mutually exclusive alternatives as part of a production improvement program. The alternatives are as follows 28 B Installed cost S8.000 S12,000 S16.000 Uniform annual benefit 1,600 1,750 2.050 Useful life, in years 10 20 20 For each alternative, the salvage válue at the end of useful life is zero. At the end of 10 years, Alt. A could be replaced by another A with identical cost and benefits. (a) Construct a choice table for interest rates from 0 to 100 (b) The MARR is 12. If the analysis period is 20 years, which alternative should be selected?Consider each of the following projects: Accounting Project Break-Even 115,800 114,000 5,340 Unit Unit Variable Fixed Costs Depreciation $ 779,000 3,200,000 129,000 Price Cost Alpha Beta $ 43 $ 25 ? $ 950,000 130,000 53 Zeta 101 ? Required: (a)Find the depreciation for Project Alpha. (Do not round your intermediate calculations.) (Click to select) ♥ (b)Find the unit price for Project Beta. (Do not round your intermediate calculations.) (Click to select) ♥ (c) Find the unit variable cost for Project Zeta. (Do not round your intermediate calculations.) (Click to select) ♥
- Calculate the modified benefit-cost ratio for the alternative: Initial Investment Cost 350000 Revenues 150000 Costs 55000 Salvage 120000 n 7 MARR 0.1 Select one: a. 1.4599 b. 1.4101 c. 1.7354 d. 1.6035 e. 1.6480vvk.3 You are evaluating two different milling machines to replace your current aging machine. Machine A costs $236,244, has a three-year life, and has pretax operating costs of $67,855 per year. Machine B costs $417,560, has a five-year life, and has pretax operating costs of $32,660 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $35,626. Your tax rate is 34 % and your discount rate is 10 %. What is the EAC for Machine A?For the following alternatives compute the Delta B/C ratio of Alternative D minus Alternative A. Use 11% as MARR. (Remember for our convention, salvage value is a minus cost.) Project Initial Investment A -1500 -2000 -2500 -5200 Annual Benefit 350 500 600 850 Salvage Value Useful Life 320 610 820 2300 O1.27 1.18 O 1.46 O 1.73 O 0.92
- PC Shopping Network may upgrade its modem pool. It last upgraded 1 year ago, when it spent $114 million on equipment with an assumed life of 4 years and an assumed salvage value of $22 million for tax purposes. The firm uses straight-line depreciation. The old equipment can be sold today for $86 million. A new modem pool can be installed today for $156 million. This will have a 3-year life, and will be depreciated to zero using straight-line depreciation. The new equipment will enable the firm to increase sales by $15 million per year and decrease operating costs by $12 million per year. At the end of 3 years, the new equipment will be worthless. Assume the firm's tax rate is 35% and the discount rate for projects of this sort is 13%. (Enter your answers in millions. For example, an answer of $13,000,000 should be entered as 13. Use minus sign to enter cash outflows, if any.) a. What is the net cash flow at time 0 if the old equipment is replaced? (Do not round intermediate…25 01:08:30 Consider a four-year project with the following information: initial fixed asset investment = $488,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $39; variable costs $30; fixed costs $208,000; quantity sold 97,000 units; tax rate=34%. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) AOCF/AQ7:09 O 4woa9idón5EqdO0:32r5kmr.J. Consider the following alternatives for a heating system: Alternative A: Rent a heating system at a cost of $500 per year over a 10-year period. Installation charge of $300 and no salvage value. It is expected to provide energy savings of $200 per year. Alternative B: Purchase a heating system for a total cost of $3.600, including installation. It has a salvage value of $1000 after 10 years of service, and is expected to provide energy savings of $500 per year. Alternative C: Purchase a heating system for a total cost of $8.000, including installation. Half of the cost is paid now and the other half is paid at the end of three years. It has a salvage value of $1,000 after 10 years and is expected to provide energy savings of $1,000 per year. For a MARR of 12%. which heating system should be installed? Opening in Google Drive.