An asset for driling was purchased and placed in service by a petroleum production company Its cost basis is $65.000, and it has an estimated MV of $13,000 at theend of an estimated useful life of 16 years Compute the depreciation amount in the fourth year and the BV at the end of the sixth year of life by each of these methodsa. The SL methodb. The 200% DB method with switchover to SLc. The GDS.d. The ADSClick the icon to view the partial listing of depreciable assets used in business.Click the icon to view the GDS Recovery Rates ()a. Using the SL method the depreciation amount in the fourth year is S (Round to the nearest dollar)

The SL method means Straight Line Method of depreciation. Here we deduct…

Answered: An asset for driling was purchased and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

An asset for drilling was purchased and placed in service by a petroleum production company Its cost basis is $70,000, and it has an estimated MV of $11,000 at the end of an estimated useful life of 18 years Compute the depreciation amount in the fourth year and the BV at the end of the seventh year of life by each of these methods a The SL method b. The 200% DE method with switchover to SL c The GDS d. The ADS. Click the icon to view the partial listing of depreciable assets used in business Click the icon to view the GDS Recovery Rates (,) a Using the SL method the depreciation amount in the fourth year is S (Round to the nearest dollar) Using the SL method the BV at the end of the seventh year of life is S (Round to the nearest dollar) b. Using the 2009% DB method the depreciation amount in the fourth year is S (Round to the nearest dollar) Using the 200% DB method the BV at the end of the seventh year of life is $ (Round to the nearest dollar) c. Using the GDS the depreciation…
An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $60,000, and it has an estimated MV of $14,000 at the end of an estimated useful life of 14 years. Compute the depreciation amount in the third year and the BV at the end of the sixth year of life by each of these methods: a. The SL method. b. The 200% DB method with switchover to SL. c. The GDS. d. The ADS.
AN ASSET FOR DRILLING WAS PURCHASED AND PLACE IN SERVICE BY A PETROLEUM PRODUCTION COMPANY. ITS INITIAL INVESTMENT IS P60,000 AND IT HAS AN ESTIMATED SV OF P12,000 AT THE END OF AN ESTIMATED USEFUL LIFE OF 14 YEARS. COMPUTE THE DEPRECIATION AMOUNT IN THE THIRD YEAR AND THE BV AT THE END OF 5TH YEAR OF LIFE BY EACH OF THESE METHODS: a. SL METHOD b. SF METHOD @ 5% PER YEAR c. DB METHOD d. DDB METHOD e. SYD METHOD
An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basiss is 600,000, and it has an estimated market value of 120,000 at the end of an estimated useful life of 14 years. Compute the depreciation amount in the third year and the book value at the end of the fifth year of life by each of these methods: a. Straight line method b. Sinking fund method at i=10% c. Declining Balance method d. Double Declining Balance method e. Sum of Years Digits (SYD) method
A 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. $4030
An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $75,000, and it has an estimated MV of $15,000 at the end of an estimated useful life of 15 years. Compute the depreciation amount in the 3d year using 200% DB with switchover SL Select one: a. $80,516.87 b. $62,461.81 c. $7511.11 d. $47,614.92
ITEM 1: An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $60,000 and it has an estimated MV of $12,000 at the end of an estimated useful life of 14 years. Compute the accumulated depreciation in the third year and the BV at the end of 5th year of life by each of these methods at the rate of 9%: 1a. The SF Method 1b. The DB Method
Subject: Engineering Economy Problem: An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is P600K and it has an estimated salvage value of P32K at the end of an estimated useful life of 14 years. Compute the total depreciation after 4 years and the book value at the end of 7 years using the sinking fund method at interest rate of 6%.
An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $75,000, and it has an estimated MV of $15,000 at the end of an estimated useful life of 15 years. Compute the BV at the end of the fifth year using GDS. Select one: O a $12,478.25 O b. $11,421.8 O C. $21,516.25 O d. $16,732.5
An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $60,000 and it has an estimated MV of $12,000 at the end of an estimated useful life of 14 years. Compute the accumulated depreciation in the third year and the BV at the end of 5th year of life by each of these methods at the rate of 9%: b. The DB Method (Declining Balance Method)- Provide the complete manual solution (not excel or tables) and cash flow diagram
An assembly line conveyor system with a 5-year life is to be depreciated by the DDB method. The conveyor units had a first cost of $30,000 with a$9000 salvage value. The annual operating cost allocated to the conveyor is $7000 per year. The book value at the end of year 2 is closest to:a. $6,480b. $10,800c. $12,400d. $18,000
A certain machine has a first cost of P 14,000, a ife of 8 years with a salvage value of P 10,000 at the end of its useful life. The total depreciation at the end of 3rd year of this machine is P 80,937.50. What method of depreciation is used in the calculation? A. Straight line methodB. Declining Balance method C. Double declining balanced method D. SYD method

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS