1. A certain equipment has a first cost P900,000, life of 8 years and a salvage value of P200,000. What is the book value of the equipment after 5 years using straight line method?
Q: An equipment costs P7000 and has a life of 8 years and salvage value of x after 8 years. If the book…
A: Depreciation expense (sum-of-the-years' digits method ) = (Cost of the assets - Salvage…
Q: A machine having a certain first cost FC has a life of 10 years and a salvage value of 6% of the…
A: Let the first cost be x Salvage value (SV) = 0.06 Life (n) = 10 years BV at the end of 6th year =…
Q: The first cost of a certain machine After 8 years it will have a salvage value of P18,000.00.…
A: Depreciation is an accounting method of allocating the cost of tangible assest over useful its life…
Q: Equipment having a first cost of $158,000, a life of 10 years, and a salvage value of $23,000. What…
A: MACRS: It is a modified accelerated cost recovery system used in the United States to calculate…
Q: An equipment costing Php 750,000 has a life expectancy of 6 years. Using the sum-of-the–year’s digit…
A: Depreciation can be defined as the non-cash expense that has a major role in financial statements.…
Q: A machine has an initial cost of P50,000 and a salvage value of P10,000 after 10 years. What is the…
A: Solution:- Calculation of depreciation and book value after 5 years of using straight line…
Q: A factory equipment has an initial cost of P175,000. Its salvage value after 8 years is P18,000. As…
A: ANSWER : Cost of the equipment = 175,000 Cost of the equipment - estimated salvage value =…
Q: A machine costs P1,500,000. It has a salvage value of P600,000 at the end of its economic life.…
A: Let the economic life = n years Machine cost (F) = P 1500000 Salvage value (S) = P 600000 Book value…
Q: A piece of certain equipment has the first cost of ₱90,000 and a salvage value of ₱4,500 at the end…
A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…
Q: A machine has an initial cost of P74,777.226 and a salvage value of P8,991.127 after 7 years. What…
A: Initial cost = P 74,777.226 Salvage value = P 8991.127 Life = 7 Years Annual depreciation = (Initial…
Q: A machine has a first cost of Php80,000 and salvage value of Php10,000 for 10 years. Using straight…
A: Meaning of depreciation: Depreciation refers to a reduction in the value of the asset due to use.…
Q: An asset has a first cost of $12,000, an annual operating cost of $3500 and a salvage value of $5000…
A: Given information: Initial cost=$12,000 Annual cost=$3500 Salvage value=$5000 Life=7 years Interest…
Q: 1. An equipment costing P750,000 has a life expectancy of 6 years. Using the sum-of-year’s digit…
A: Sum of the useful life=6+5+4+3+2+1=21 Depreciable base =Cost of the asset-Salvage value In the sum…
Q: A machine costs RO 40,000 with a salvage value of RO 20,000. The expected life of the machine is…
A: Depreciation is the decrease in the value of asset. Salvage Value is the estimated value of property…
Q: A piece of certain equipment has the first cost of ₱90,000 and a salvage value of ₱4,500 at the end…
A: Depreciation = ( Historical cost - Salvage value)/Useful life Book value = Historical cost -…
Q: A machine has a first cost of P36,000 and a salvage value ofP4,000 after 8 years. Find the annual…
A: Formula: Straight line method depreciation expense = ( Asset cost - Salvage value ) / Useful life…
Q: Consider the following information: Asset Cost $56,000 Salvage value 1,000 Life 10 years…
A: Annual depreciation = (Asset Cost-Salvage value )/Life of the asset
Q: An asset is purchased for Php50,000. The salvage value in 25 years is Php100,00. What are the…
A: Purchase price = Php 50,000 Salvage value = Php 10,000 Life = 25 Years
Q: 1. A machine has a first cost of P 600,000.00 and a salvage value of P 60,000.00 at the end of…
A: "Since you have asked multiple question we will solve the first question for you. If you want any…
Q: The price of equipment is available for purchase (15000) $ has an estimated useful life of 10 years…
A: solution given Price 15000 Useful life 10 years Salvage value 5000 Using…
Q: A certain machine has a first cost of 30,000; annual costs of 6,000; a salvage value of 4,000 and a…
A: Introduction: Depreciation is the process of allocating the asset's value over its expected or…
Q: A machine has an initial cost of P110,634.945 and a salvage value of P22,728.983 after 10 years.…
A: Depreciation per year = (Initial cost - Salvage value) / Useful life Depreciation per year =…
Q: A certain office equipment has a first cost of P 20,000 and a salvage value of P 1,000 at the end of…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: achine having a certain first cost FC has a life of 10 years and a salvage value of 6% of the cost…
A: Depreciation- Depreciation is defined as the decrease in the monetary worth of a fixed asset until…
Q: A machine cost RO 50,000 and its estimated salvage value is RO 5000 and its expected life is eight…
A: Given Cost = RO 50,000 Salvage Value = RO 5000
Q: A piece of equipment has a first cost of $75000, a maximum useful life of 4 years, and a market…
A: Please see the next step for the solution
Q: A lathe machine costs P650,000 and the salvage value of P65,000 after 20 years. 7.Find the annual…
A: Depreciation per annum by DBM = (cost - salvage value)/ years of useful life = (650000-65000)/…
Q: use Sinking Fund Method and determine the depreciation at the 5th year.
A: Sinking fund method is a method of depreciation technique. This method helps in taking financing…
Q: 1. The initial cost of a paint sand mill, including its installation is P 700,000.00. The BIR…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: The first cost of a certain piece of equipment is 40,000OMR. It will have an annual operating Fost…
A: Given: Initial cost =40000 OMRAnnual operating cost =10000 OMRSalvage value =6000 OMRLife (n)= 5…
Q: A machine has an initial cost of P120,243.85 and a salvage value of P14,751.13 after 9 years. What…
A: The depreciation using the straight line method of accounting is computed by dividing the initial…
Q: An asset in the USA was purchased for $ 12.65 Million. The expected service life is 15 years and…
A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…
Q: A piece of equipment has a first cost of $75000, a maximum useful life of 4 years, and a market…
A: SOLUTION- GIVEN, COST = $75000 USEFUL LIFE =4 YEARS INTEREST RATE = 9 %
Q: A sand mixing device costs $48,000. At the end of 5 years, the salvage value is $18,000. Using…
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: The equipment in a power station costs 850000 S and has a salvage value of Q5 7000 $ at the end of…
A: Depreciation is the reduction in the value of fixed assets due to normal wear and tear, passage of…
Q: The cost of a Range Rover is 50,000 RO with an estimated life of 8 years and the salvage value is…
A: The depreciation expense is charged on fixed assets as reduced value with the passage of time.
Q: The first cost of a certain piece of equipment is 35,000 OMR. It will have an annual operating cost…
A: The capitalized cost is the cost that is the present value of the project.
Q: A printing equipment cost P500,000 and the cost of handling and installing is P30,000. The life of…
A: Depreciation is charged to record reduction in value of fixed assets over the period of time.…
Q: An item's initial cost is P 800,000, and its market worth after 5 years is P 507,630. Determine the…
A:
Q: An equipment costs P400,000 and has a life of 30,000 hours. At the end of which its salvage value is…
A: Depreciation is the expense that is incurred due to the usage of machinery and other assets during…
Q: A man bought an equipment which cost P524,000.00 Freight and installation expenses cost him…
A: Given: Cost of equipment = P524,000 Installation expenses = P31,000 Years = 15 Salvage value =…
Q: 1. The cost of a machine is RM7000 and its salvage value is RM800 at the end of 9 years. No use…
A: The formula used is shown:
Q: If the cost of building is 250000 OMR, salvage value 20000 OMR, useful life is 20 years. What is the…
A: Depreciation is a way of declining the cost of assets over the useful life of assets, the company…
Q: A certain equipment costs P7,000 has an economic life of “n” years and a salvage value of P350 at…
A: Sum of Years of Digit is one of the depreciation methods which is used internationally by the…
Q: A bulldozer has an initial cost of Php 2,000,000. Its salvage value after 12 years is Php 175,000.…
A: Depreciation: It can be defined as a monetary fall in the value of the asset because of continuous…
Q: A certain machine has book value of P140,452.78 after 5 years and P66,037.08 after 8 years. The book…
A: As period goes on value of the equipment goes on decreasing as period goes away and that decrease in…
Q: (#12) (#14)
A: In the double declining balance method, we have to put the residual balance upto extent of salvage…
Q: A certain machine has a first cost of 30,000; annual costs of 6,000; a salvage value of 4,000 and a…
A: Depreciation refers to the allocation of the assets value over the expected or the useful life of…
Q: An equipment costing P1.8M has a salvage value of P300,000 after 5 years. Calculate the depreciation…
A: Cost of Equipment is P1.8 million or P1,800,000 Salvage value is P300,000 Life of Equipment is 5…
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- Average rate of returncost savings Maui Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of 125,000 with a 15,000 residual value and an eight-year life. The equipment will replace one employee who has an average wage of 28,000 per year. In addition, the equipment will have operating and energy costs of 5,150 per year. Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment.Use the information in Problem A-1 to solve this problem. Assume the delivery van is expected to have a useful life of 100,000 miles (Year 1, 40,000 miles; Year 2, 30,000 miles; Year 3, 20,000 miles; Year 4, 10,000 miles). Required Prepare a schedule of depreciation using the units-of-production method. Check Figure Year 3 depreciation, 3,200 PROBLEM A-1 A delivery van was bought for 18,000. The estimated life of the van is four years. The trade-in value at the end of four years is estimated to be 2,000.An auto repair company needs a new machine that will check for defective sensors. The machine has an Initial investment of $224,000. Incremental revenues, including cost savings, are $120,000, and Incremental expenses, including depreciation, are $50,000. There is no salvage value. What is the accounting rate of return (ARR)?
- Newmarge Products Inc. is evaluating a new design for one of its manufacturing processes. The new design will eliminate the production of a toxic solid residue. The initial cost of the system is estimated at 860,000 and includes computerized equipment, software, and installation. There is no expected salvage value. The new system has a useful life of 8 years and is projected to produce cash operating savings of 225,000 per year over the old system (reducing labor costs and costs of processing and disposing of toxic waste). The cost of capital is 16%. Required: 1. Compute the NPV of the new system. 2. One year after implementation, the internal audit staff noted the following about the new system: (1) the cost of acquiring the system was 60,000 more than expected due to higher installation costs, and (2) the annual cost savings were 20,000 less than expected because more labor cost was needed than anticipated. Using the changes in expected costs and benefits, compute the NPV as if this information had been available one year ago. Did the company make the right decision? 3. CONCEPTUAL CONNECTION Upon reporting the results mentioned in the postaudit, the marketing manager responded in a memo to the internal audit department indicating that cash inflows also had increased by a net of 60,000 per year because of increased purchases by environmentally sensitive customers. Describe the effect that this has on the analysis in Requirement 2. 4. CONCEPTUAL CONNECTION Why is a postaudit beneficial to a firm?Differential analysis for machine replacement Boyer Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is 60,000, the accumulated depreciation is 24,000, its remaining useful life is five years, and its residual value is negligible. On May 4 of the current year, a proposal was made to replace the present manufacturing procedure with a fully automatic machine that has a purchase price of 180,000. The automatic machine has an estimated useful life of five years and no significant residual value. For use in evaluating the proposal, the accountant accumulated the following annual data on present and proposed operations: a. Prepare a differential analysis dated May 4 to determine whether to continue with ( Alternative 1) or replace (Alternative 2) the old machine. Prepare the analysis over the useful life of the new machine. b. Based only on the data presented, should the proposal be accepted? c. What are some of the other factors that should be considered before a final decision is made?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.
- Use Service-Output Method. A Machine costs ₱80,000 and an estimated life of 10 years with a salvage value of ₱5,000. Assuming that the total service of the machine is 1,497,600 hours and the number of working days per year is 260 days. What is the book value after 4 years if the machine production time a is 24 hours? Answer: BV4 = P 78,750.00Show SolutionSUBJECT: ENGINEERING ECONOMICS PLEASE PROVIDE A COMPLETE SOLUTION FOR LETTERS C, D, AND E. THE FINAL ANSWER IS ALREADY GIVEN. THANK YOU A Machine costs ₱80,000 and an estimated life of 10 years with a salvage value of ₱5,000. What is the book value after 5 years using the following methodology?Calculating EAC You are evaluating two different silicon wafer milling machines. The Techron I costs $265,000, has a 3-year life, and has pretax operating costs of $41,000 per year. The Techron II costs $330,000, has a 5-year life, and has pretax operating costs of $52,000 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $25,000. If your tax rate is 21 percent and your discount rate is 9 percent, compute the EAC for both machines. Which do you prefer? Why?
- Engineering Economics Two stamping machines are under consideration for purchase by a metal recycling company. The manual model will cost P1,250,000 to buy with an eight-year life and a P250,000 salvage value. Its annual operating costs will be P800,000. A computer-controlled model will cost P4,750,000 to buy and it will have a twelve-year life if upgraded at the end of year six for 750,000. Its terminal salvage value will be P1,150,000, with annual operating costs of P375,500 for labor and P125,000 for maintenance. The company's minimum attractive rate of return is 18%. Compute manually the Present Worth with Cash flow diagram of the (2) models. Compare the results. Don't use excelA Machine costs ₱80,000 and an estimated life of 10 years with a salvage value of ₱5,000. What is the book value after 5 years using the following methodology? a. Service-Output Method. Assuming that the total service of the machine is 1,497,600 hours and the number of working days per year is 260 days. What is the book value after 4 years if the machine production time a is 24 hours? BV4 = P 78,750.00Note: Provide solution since the answers are already shown and include the CASH FLOW DIAGRAM. Please use manual solution and not excel solutionsPLEASE SOLVE THIS TWO PROBLEMS ASAP. THANK YOU! A. A machine costs P388868 with a salvage value of P18029 is expected to last for 28537 hours in 5 years. In the first year of service it was used for 8077 hours. Compute the book value at the end of the first year. B.The cost of a certain asset is P486042 , its life is 5 years and scrap value is P9050 . Find the cost of depreciation after the first year using a constant percentage method.