A machine now in use was purchased fouryears ago at a cost of $30,000. It has a book valueof $9,369. It can be sold for $12,000, but it could beused for three more years, at the end of which time,it would have no salvage value. What is the currentamount of economic depreciation for this asset?

Q: A machine, purchased for$50,000, has a depreciable life of five years. It will have an expected…

A:

Q: A machine purchased three years ago for $311,000 has a current book value using straight-line…

A: The decision for keeping a machine and replacing the machine is taken by the company by comparing…

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 machine costs Php 500,000 with a salvage value of Php 50,000. Its useful life is six years. The…

A: Depreciation is the decrease in the value of fixed tangible asset due to usage, obsolence or passage…

Q: The Erickson Toy Corporation currently uses an injection moulding machine that was purchased 2 years…

A: The capital budgeting techniques of the company is helping in evaluation of different projects.…

Q: If money is worth 10% to the company, should the old machine be replaced or not and how much is the…

A: Initial cost of existing vertical boring machine is considered at P60,000 being the realizable value…

Q: A machine now in use was purchased fouryears ago at a cost of $30,000. It has a book valueof $9,369.…

A: The reduction in the economic value of an asset is term as the economic depreciation. It is the…

Q: A delivery car had a first cost of $30,000, an annual operating cost of $16,000, and an estimated…

A: Annual worth consist of the annual operating cost and equivalent annual cost of first cost with…

Q: An automated assembly robot that cost $400,000 has a depreciable life of five years with a $100,000…

A: The book value is the cost of the assets less the depreciation for the period. The depreciation is…

Q: The Andrews Company has just purchased $46,710,000 of plant and equipment that has an estimated…

A: Calculation of depreciation expenses for second year of use are as follows.

Q: A machine now in use, which was bought five years ago for $4,000, has been fully depreciated. It can…

A: Opportunity cost: The opportunity cost is the benefit that has been lost due to the selection of…

Q: Twelve years ago, an industrial facility bought a boring machine for P65,000. The estimated life of…

A: Solution: Balance in depreciation reserve = (P65,000*12/25) = P31,200 Amount to be received on sale…

Q: MTE mechanical engineering Company has a machine purchased 5 years ago at a cost of BDT 100000.00.…

A: Data given: Old Machine: Cost price = BDT 100000 Life of machine =10 years Annual depreciation = BDT…

Q: The Zhang Equipment Company’s machine was purchased 5 years ago for $55,000. It had an expected life…

A: We have to use Macrs 5 years depreciation table to calculate depreciation.

Q: A dump truck was bought for P30,000 six years ago. It will have a salvage value of 3,000 four years…

A: Depreciation is the reduction in the value of asset because of its use & obsolescence.…

Q: A new barcode reading device has an installed cost basis of $22,820 and an estimated service life of…

A: The declining balance method is the method of calculating depreciation where higher depreciation is…

Q: The Zhang Equipment Company’s machine was purchased 5 years ago for $55,000. It had an expected life…

A: Net present value is the difference between the present value of cash inflows and present value of…

Q: A machine purchased three years ago for $311,000 has a current book value using straight-line…

A: Machinery costs can be classified into two domains Annual ownership costs Operating Costs Annual…

Q: A new barcode reading device has an installed cost basis of $23,790 and an estimated service life of…

A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…

Q: A new machine tool is being purchased for $25,000 and is expected to have a zero salvage value at…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/5 years) x 2 = 40%

Q: We are evaluating a project that costs $907,000, has an 14-year life, and has no salvage value.…

A: Solution 1-   A Sales = 94000 units Fixed cost =916070 Contribution per unit= sales unit - variable…

Q: A delivery car had a first cost of $30,000, an annual operating cost of $15,000, and an estimated…

A: Annual worth analysis is an analysis of value of an investment on an annual basis. It measures the…

Q: A machine purchased three years ago for $313,000 has a current book value using straight-line…

A: Solution: Particulars Keep Old Machine Purchase New machine Operating Expenses $320,000.00…

Q: A delivery car had a first cost of $40,000, an annual operating cost of $15,000, and an estimated…

A: The annual operating cost can be considered as an annuity where the future value will be  A =…

Q: Compare the after-tax annual cost of the two machines and decide whether Machine A should be…

A: Annual Costs: It is the annual cost of operating, maintaining, and owning the asset over its whole…

Q: A commercial company plans to buy the device for $ 20,000 and is expected to sell it for $ 8,000 in…

A: Formula: Straight line method depreciation = ( Asset cost - Salvage value ) / Useful life

Q: A machine purchased three years ago for $313,000 has a current book value using straight-line…

A: Keep old machine Purchase new Machine Annual Operating expense $32000 $9000 x No. of years 10…

Q: A company is considering purchasing a machine that costs $480000 and is estimated to have no salvage…

A: Cash payback period = Initial investment/Cash flow per year

Q: The Darlington Equipment Company purchased a machine5 years ago at a cost of $85,000. The machine…

A: Calculation of Initial cash flow

Q: An injection moulding machine was purchased 2 years ago. The machine has been depreciated on a…

A: The difference between the current value of cash inflows and outflow of cash over a period of time…

Q: What will the depreciation charge be in year seven​? What will be the book value at the end of year…

A: Formula: Rate of DDB Depreciation= 100%Usefull Life×2 Given: CNC machine ​$35,000 Service life    7…

Q: Machine A was purchased 5 years ago for $90,000. Its operating cost is higher than expected, so it…

A: Computation of the market value for machine that would make two machines equally attractive is shown…

Q: An automated assembly robot that cost $300,000 has a recovery period of five years with an expected…

A: Depreciation recapture- It is a tax provision that powers the IRS to collect taxes on any profitable…

Q: An existing asset that cost $16,000 twoyears ago has a market value of $12,000 today, anexpected…

A: existing asset that cost $16,000 two years ago operating cost = 4000 market value = 12000  slavage…

Q: A delivery car had a first cost of $36,000, an annual operating cost of $16,000, and an estimated…

A: As given in question : Cost of car = $36000 AOC( Annual Operating Cost) = $16000 Salvage value =…

Q: A machine has a life of 25 years, costs $250,000, and has a salvage value of $20,000 using…

A:

Q: Vandezande Inc. is considering the acquisition of a new machine that costs $467,000 and has a useful…

A: Payback is a capital budgeting tool which is used to find the time required to recover the invested…

Q: A machine purchased three years ago for $309,000 has a current book value using straight-line…

A: First of all, the cost of old machinery is sunk cost and no more relevant for our calculations. The…

Q: If a new machine is purchased for OMR 250,000 that has a useful life of 5 years with no residual…

A: Annual depreciation=Purchase valueUseful life=OMR 250,0005=OMR 50,000

Q: On January 1, 2003, Superior Landscaping Company paid P17,000 to buy a stump grinder. If Superior…

A: Depreciation is the gradual conversion of the cost of a  fixed asset into expense. It is a charge…

Q: A machine costs $400,000 with salvage value of 20,000. Life of it is six years. In the first year,…

A: Solution:- The fall in value of asset due to its wear and tear cost is called depreciation.…

Q: A new barcode reading device has an installed cost basis of $22,820 and an estimated service life of…

A: In the case of 150% declining balance method, depreciation is calculated as follows - Depreciation…

Q: A piece of machinery costs P50,000 and has an anticipated P8,000 salvage value at the end of its…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…