A machine was purchased by a company three years ago for $9,000. Estimated salvage value is...
A machine was purchased by a company three years ago for $9,000. Estimated salvage value is $1000 at the end of its 10 years life.
The asset is Class 8 (20% CCA rate -- declining balance class, half year rule applicable).
Determine the asset’s current book value (i.e., at the beginning of Yr. 4) and the depreciation charge during this year (i.e., Yr. 4) by the declining balance method. Also, find the book value at the end of Yr. 4.
Homework Answers
Asset: machine
Class: 8
CCA rate: 20%
Calculation of book value(UCC) and depreciation(CCA)
| Description |
book value/UCC at the beginning |
Additions | disposal | total |
Depreciation/CCA for the year |
Book value/UCC in the end |
|---|---|---|---|---|---|---|
|
Year 1 |
- | 9000 | - | 9000 |
9000x½x20% = 900 |
8100 |
|
Year 2 |
8100 | - | - | 8100 |
8100x20% =1620 |
6480 |
|
Year 3 |
6480 | - | - | 6480 |
6480x20% =1296 |
5184 |
|
Year 4 |
5184 | - | - | 5184 |
5184x20% =1036.8 |
4147.2 |
1. Asset's book value at the beginning of year 4 = $5184
2. Depreciation charge during year 4 = $1036.8
3. Asset's book value at the end of year 4 = $4147.2
Add Answer to:
A machine was purchased by a company three years ago for $9,000.
Estimated salvage value is...
3(a) A machine has a life of 20 years, costs $200,000 and has an estimated salvage...
3(a) A machine has a life of 20 years, costs $200,000 and has an estimated salvage value of $10,000. (i) For the Straight Line method of depreciation, what is the depreciation rate and what is the book value at the end of year 10? (ii) If the declining balance method is to be used, at what depreciation rate (i.e. the capital cost allowance CCA rate), the book value at the end of year 10 will be the same as for...
Depreciation Schedules Barb's Florists Name: Cost Expected salvage value Estimated useful life in years Estimated useful...
Depreciation Schedules Barb's Florists Name: Cost Expected salvage value Estimated useful life in years Estimated useful life in miles $13.000 $1.000 Purchased new truck Jan 1, 2012 Sold Dec 31, 2013 for $7,500 100 Complete A, B, C, D Intro thru SL Depr 8 min >> A. Prepare the straight line depreciation table. Straight-line Year Depr% Deprec Exp Purchase Notes calculations Truck Date of Purchase Accum Book Value Depreciation Rate Cost Salvage Value Depeche Cost 1st year Months Date of...
On January 1, 2018, a machine was purchased for $120,000. The machine has an estimated salvage...
On January 1, 2018, a machine was purchased for $120,000. The
machine has an estimated salvage value of $9,600 and an estimated
useful life of 5 years. The machine can operate for 120,000 hours
before it needs to be replaced. The company closed its books on
December 31 and operates the machine as follows: 2018, 24,000 hrs;
2019, 30,000 hrs; 2020, 18,000 hrs; 2021, 36,000 hrs; and 2022,
12,000 hrs.
Compute the annual depreciation charges over the machine’s life
assuming...
On January 1, 2015, a machine was purchased for $96,300. The machine has an estimated salvage...
On January 1, 2015, a machine was purchased for $96,300. The
machine has an estimated salvage value of $6,420 and an estimated
useful life of 5 years. The machine can operate for 107,000 hours
before it needs to be replaced. The company closed its books on
December 31 and operates the machine as follows: 2015, 21,400 hrs;
2016, 26,750 hrs; 2017, 16,050 hrs; 2018, 32,100 hrs; and 2019,
10,700 hrs.
Compute the annual depreciation charges over the machine’s life
assuming...
A company currently uses a machine that was purchased 2 years ago. This machine is being...
A company currently uses a machine that was purchased 2 years ago. This machine is being depreciated on a straight-line basis and has 6 years of life remaining. Its current book value is $2,100 and it can be sold for S2,500 at this time. Thus, the annual Hepreciation expense is S2,100/6-S350 per year. If the old machine is not replaced, it could be sold for S500 at the end ofits useful life The company is offered a replacement machine which...
On January 1, 2015, a machine was purchased for $101,700. The machine has an estimated salvage...
On January 1, 2015, a machine was purchased for $101,700. The machine has an estimated salvage value of $6,780 and an estimated useful life of 5 years. The machine can operate for 113,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2015, 22,600 hrs; 2016, 28,250 hrs; 2017, 16,950 hrs; 2018, 33,900 hrs; and 2019, 11,300 hrs.Please show calculations for all problems below. 1) Compute the annual...
•Original Machine –Initial cost = 100,000 –Annual depreciation = 9,000 –Purchased 5 years ago –Book Value...
•Original Machine –Initial cost = 100,000 –Annual depreciation = 9,000 –Purchased 5 years ago –Book Value = 55,000 –Salvage today = 65,000 –Salvage in 5 years = 10,000 •New Machine –Initial cost = 150,000 –5-year life –Salvage in 5 years = 0 –Cost savings = 50,000 per year –3-year MACRS depreciation •Required return = 10% •Tax rate = 40% Based on this information calculate the cash flows generated by replacing the old machine with the new one and the IRR...
On January 1, 2015, a machine was purchased for $99,900. The machine has an estimated salvage...
On January 1, 2015, a machine was purchased for $99,900. The machine has an estimated salvage value of $6,660 and an estimated useful life of 5 years. The machine can operate for 111,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2015, 22,200 hrs; 2016, 27,750 hrs; 2017, 16,650 hrs; 2018, 33,300 hrs; and 2019, 11,100 hrs. Part 1 Your answer is correct. Compute the annual depreciation...
On January 1, 2015, a machine was purchased for $102,600. The machine has an estimated salvage...
On January 1, 2015, a machine was purchased for $102,600. The
machine has an estimated salvage value of $6,840 and an estimated
useful life of 5 years. The machine can operate for 114,000 hours
before it needs to be replaced. The company closed its books on
December 31 and operates the machine as follows: 2015, 22,800 hrs;
2016, 28,500 hrs; 2017, 17,100 hrs; 2018, 34,200 hrs; and 2019,
11,400 hrs.
B. ssume a fiscal year-end of September 30. Compute the...
machine 1: cost 76,000 salvage value 6,000 useful life 10 years purchased 7/1/16 machine 2: cost...
machine 1:
cost 76,000
salvage value 6,000
useful life 10 years
purchased 7/1/16
machine 2:
cost 80,000
salvage value 10,000
useful life 8 years
purchased 1/1/13
machine 3:
cost 78,000
salvage value 6,000
useful life 6 years = 24,000 hours
purchased 1/1/18
Problem: In recent years, Hrubeck Company purchased three machines. Because of heavy turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods were selected. Information concerning...
3(a) A machine has a life of 20 years, costs $200,000 and has an estimated salvage value of $10,000. (i) For the Straight Line method of depreciation, what is the depreciation rate and what is the book value at the end of year 10? (ii) If the declining balance method is to be used, at what depreciation rate (i.e. the capital cost allowance CCA rate), the book value at the end of year 10 will be the same as for...
Depreciation Schedules Barb's Florists Name: Cost Expected salvage value Estimated useful life in years Estimated useful life in miles $13.000 $1.000 Purchased new truck Jan 1, 2012 Sold Dec 31, 2013 for $7,500 100 Complete A, B, C, D Intro thru SL Depr 8 min >> A. Prepare the straight line depreciation table. Straight-line Year Depr% Deprec Exp Purchase Notes calculations Truck Date of Purchase Accum Book Value Depreciation Rate Cost Salvage Value Depeche Cost 1st year Months Date of...
On January 1, 2018, a machine was purchased for $120,000. The
machine has an estimated salvage value of $9,600 and an estimated
useful life of 5 years. The machine can operate for 120,000 hours
before it needs to be replaced. The company closed its books on
December 31 and operates the machine as follows: 2018, 24,000 hrs;
2019, 30,000 hrs; 2020, 18,000 hrs; 2021, 36,000 hrs; and 2022,
12,000 hrs.
Compute the annual depreciation charges over the machine’s life
assuming...
On January 1, 2015, a machine was purchased for $96,300. The
machine has an estimated salvage value of $6,420 and an estimated
useful life of 5 years. The machine can operate for 107,000 hours
before it needs to be replaced. The company closed its books on
December 31 and operates the machine as follows: 2015, 21,400 hrs;
2016, 26,750 hrs; 2017, 16,050 hrs; 2018, 32,100 hrs; and 2019,
10,700 hrs.
Compute the annual depreciation charges over the machine’s life
assuming...
A company currently uses a machine that was purchased 2 years ago. This machine is being depreciated on a straight-line basis and has 6 years of life remaining. Its current book value is $2,100 and it can be sold for S2,500 at this time. Thus, the annual Hepreciation expense is S2,100/6-S350 per year. If the old machine is not replaced, it could be sold for S500 at the end ofits useful life The company is offered a replacement machine which...
On January 1, 2015, a machine was purchased for $102,600. The
machine has an estimated salvage value of $6,840 and an estimated
useful life of 5 years. The machine can operate for 114,000 hours
before it needs to be replaced. The company closed its books on
December 31 and operates the machine as follows: 2015, 22,800 hrs;
2016, 28,500 hrs; 2017, 17,100 hrs; 2018, 34,200 hrs; and 2019,
11,400 hrs.
B. ssume a fiscal year-end of September 30. Compute the...
machine 1:
cost 76,000
salvage value 6,000
useful life 10 years
purchased 7/1/16
machine 2:
cost 80,000
salvage value 10,000
useful life 8 years
purchased 1/1/13
machine 3:
cost 78,000
salvage value 6,000
useful life 6 years = 24,000 hours
purchased 1/1/18
Problem: In recent years, Hrubeck Company purchased three machines. Because of heavy turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods were selected. Information concerning...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago