Alvin Cobought a piece of land in 1991 for $160,000 which appreciated in value at the rate of 3% per year for the first three years and then at the rate of 4% for the next four years. Find its value after 7 years.
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Alvin Cobought a piece of land in 1991 for $160,000 which appreciated in value at the rate of 3% per year for the first three years and then at the rate of 4% for the next four years. Find its value after 7 years.
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- Kenzie purchased a new 3-D printer for $450,000. Although this printer is expected to last for ten years, Kenzie knows the technology will become old quickly and so she plans to replace this printer in three years. At that point, Kenzie believes she will be able to sell the printer for $30,000. Calculate yearly depreciation using the double-declining-balance method.Alfredo Company purchased a new 3-D printer for $900,000. Although this printer is expected to last for ten years, Alfredo knows the technology will become old quickly, and so they plan to replace this printer in three years. At that point, Alfredo believes it will be able to sell the printer for $15,000. Calculate yearly depreciation using the double-declining-balance method.Montezuma Inc. purchases a delivery truck for $20,000. The truck has a salvage value of $8,000 and is expected to be driven for ten years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After five years of recording depreciation, Montezuma determines that the delivery truck will be useful for another five years (ten years in total, as originally expected) and that the salvage value will increase to $10,000. Determine the depreciation expense for the final five years of the assets life, and create the journal entry for years 6–10 (the entry will be the same for each of the five years).
- Ahsan Co bought a piece of land in 1991 for $160,000 which appreciated in value at the rate of 3% per year for the first three years and then at the rate of 4% for the next four years. Find its value after 7 yearsMr. Ceballos purchased a statue for Php 2,500. Ten years later, he sold this statue for Php 7,500. If the statue is viewed as an investment, what annual rate did he earn? 6. How many years will it take for an investment to be twice its value if it earns 8% compounded annually?Kimmy brought a couch worth Php 10,000 and 10 years later, he sold it for Php 8,000. If the depreciation continues at the same rate, how much would be the worth of the couch in four years more?
- Adams Company bought a piece of land in 1981 for $200,000. By 2005, its value had increased to $1 million. Find the annual rate of appreciation during this period.A civil engineer plans to own a 300 m² lot after 5 years for an estimated cost of 570,000. To accumulate this amount, he will make equal year-end deposits in a fund earning 12% compounded annually. However, at the end of the 2nd year, he married his girlfriend and decided to build a 250,000 worth house on the lot he is planning to buy. What should be his annual deposits for the last 3 yearsRichard Rambo presently owns the Marine Tower office building, which is 20 years old, and is considering renovating it. He purchased the property two years ago for $800,000 and financed it with a 20-year, 75 percent loan at 4.5 percent interest (monthly payments). Of the $800,000, the appraiser indicated that the land was worth $200,000 and the building $600,000. Rambo has been using straight-line depreciation over 39 years (1/39 per year for simplicity). At the present time Marine Tower is producing $52,000 in NOI, and the NOI and property value are expected to increase 2 percent per year. The current market value of the property is $820,000. Rambo estimates that if the Marine Tower office building is renovated at a cost of $200,000, NOI will be about 20 percent higher next year ($62,400 vs. $52,000) due to higher rents and lower expenses. He also expects that with the renovation the NOI will increase 3 percent per year instead of 2 percent. Furthermore, Rambo believes that after five…
- Richard Rambo presently owns the Marine Tower office building, which is 20 years old, and is considering renovating it. He purchased the property two years ago for $800,000 and financed it with a 20-year, 75 percent loan at 4.5 percent interest (monthly payments). Of the $800,000, the appraiser indicated that the land was worth $200,000 and the building $600,000. Rambo has been using straight-line depreciation over 39 years (1/39 per year for simplicity). At the present time Marine Tower is producing $52,000 in NOI, and the NOI and property value are expected to increase 2 percent per year. The current market value of the property is $820,000. Rambo estimates that if the Marine Tower office building is renovated at a cost of $200,000, NOI will be about 20 percent higher next year ($62,400 vs. $52,000) due to higher rents and lower expenses. He also expects that with the renovation the NOI will increase 3 percent per year instead of 2 percent. Furthermore, Rambo believes that after five…Josh bought a huge photocopier machine for 350,000.00 pesos for his new business and will use it for 9 years with a salvage value 85,000.00 pesos. a. How much is the book value on the 4th year if he used sum of the years digit method in computing the depreciation?b. How much is the total depreciation after using the machine for 3 years?Ellie’s car depreciates by 7% per year. the car is valued at $21000. what is the value after 4 years? using the straight line method
