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 total depreciation amount of 9 years. use SOYD.
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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 total
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- Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. With DEPREC5 still on the screen, click the Chart sheet tab. This chart shows the accumulated depreciation under all three depreciation methods. Identify below the depreciation method that each represents. Series 1 _____________________ Series 2 _____________________ Series 3 _____________________ When the assignment is complete, close the file without saving it again. Worksheet. The problem thus far has assumed that assets are depreciated a full year in the year acquired. Normally, depreciation begins in the month acquired. For example, an asset acquired at the beginning of April is depreciated for only nine months in the year of acquisition. Modify the DEPREC2 worksheet to include the month of acquisition as an additional item of input. To demonstrate proper handling of this factor on the depreciation schedule, modify the formulas for the first two years. Some of the formulas may not actually need to be revised. Do not modify the formulas for Years 3 through 8 and ignore the numbers shown in those years. Some will be incorrect as will be some of the totals. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as DEPRECT. Hint: Insert the month in row 6 of the Data Section specifying the month by a number (e.g., April is the fourth month of the year). Redo the formulas for Years 1 and 2. For the units of production method, assume no change in the estimated hours for both years. Chart. Using the DEPREC5 file, prepare a line chart or XY chart that plots annual depreciation expense under all three depreciation methods. No Chart Data Table is needed; use the range B29 to E36 on the worksheet as a basis for preparing the chart if you prepare an XY chart. Use C29 to E36 if you prepare a line chart. Enter your name somewhere on the chart. Save the file again as DEPREC5. Print the chart.A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.
- 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 company. Its costs basis is $60,000 and it has an estimated MV of $12,000 at the end of estimated useful life of 14 years. Compute the total depreciation amount after a years. Use SOYD.a petroleum company has purchased an air cooler for offshore use (asset class 13.2). It has a cost basis of $400,000. With additional options costing $20,000, the cost basis for depreciation purposes is $420,000. Its MV at the end of five years is estimated as $80,000. Assume it will be depreciated under the GDS: a) what is the cumulative depreciation through the end of year three? b) What is the MACRS depreciation in the fourth year? c) What is the BV at the end of year two
- 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 Market Value (Salvage Value) of $12,000 at the end of an estimated useful life of 14 years. Compute for the depreciation amount in the third year and the BV at the end of the 5th year of the life by each of these methods. (No need to Solve all years, show your solution) a. The straight line method b. the SYD method c. The 200% declining-balance method.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 diagramAn 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%a. The SF Method (Sinking Fund Method)- Provide the complete manual solution (not excel or tables) and cash flow diagram
- 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) methodAn 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 Market Value (Salvage Value) of $12,000 at the end of an estimated useful life for 14 years. Compute for the depreciation amount in the third year and the BV at the end of the 5th year of the life by each of these methods. (No need to solve for the years) 1.) Straight Line Method 2.) SYD method 3.) The 200% declining-balance method.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 the end 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 methods a. The SL method b. The 200% DB 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)
