discuss briefly the difference between salvage value and scrap value
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discuss briefly the difference between salvage value and scrap value
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- A concrete crusher has been purchased for $60,000 and it has an estimated salvage value of $10,000 at the end of its five years life. Engineers have estimated the following units of production of crushed materials over the next five year 1 2 3 4 5 End of year Crushed Material m³ 16,000 24,000 36,000 16,000 8,000 What is the total depreciation at end of year 3 and what is the book value at end of year 2 ?Engineering Economics: Depreciation MethodsGiven the following data for a construction equipment: Initial cost = P 1,200,000.00; Economic Life = 12 years; Estimated salvage value = P 320,000.00. (a) What is the book value after seven years? (b) What is the depreciation charge on the 4th year? (c) What is the total depreciation charge at the end of the 10th year?
- Problem 1: A dump truck was bought for P750,000 three years ago. It will have a salvage value of P100,000 two years from now. Using the following methods, determine book value at the end of 3d year, accrued depreciation at the end of 2nd year and annual depreciation cost at the end of 4th year. Show solutions for the asked years. a. Straight Line Formula YEAR BOOK VALUE AT THE ANNUAL DEPRECIATION COST ACCRUED DEPRECIATION BOOK VALUE AT THE END OF THE YEAR BEGINNING OF THE YEAR: A construction company had a number of projects and needed to a construction equipment to be used for five years. The company had two choices: the first one included buying the equipment with a price of $50,000; the operation and repair cost is $2,000 a year, and the salvage value is $10,000 at the end of the fifth year. The second option comprised renting the required equipment with amount of $8,000 a year, which is usually paid at the begging of each year and needs $3,000 a year for operation and repair. Specify which option is better for the company? The interest rate is 6%.. A machine has initial cost of 10,000 and a salvage value of P500 for the life of 10years. Calculate the book value on the 8th year of the equipment given the 12% interest rate.
- 4. A piece of equipment costs $50,000 to buy. Insurance costs $1000 a year. The maintenance costs and salvage values are listed below. Which year should you turn in this equipment? Year 1: Maintenance $5,000, salvage value $40,000 Year 2: Maintenance $6,500, salvage value $35,000 Year 3: Maintenance $8,000, salvage value $30,000 Year 4: Maintenance $9,500, salvage value $25,000 Year 5: Maintenance $11,000, salvage value $20,000QUESTION 4 A company that manufactures pulse Doppler insertion flow meters uses the Straight Line method for book depreciation purposes. Newly acquired equipment has a first cost of $130,000 with a 3-year life and a $17,000 salvage value. Determine the depreciation charge and a book value for year 1. The book value for year 1, (in $)A construction equipment costing 630,000 has a life of 10 years using the sum of years digit method, total depreciation at the end of 4 years is 376,995.05. Determine the salvage value.
- Why would a BOD value of 8 be considered to be poor?Problem 1: A dump truck was bought for P750,000 three years ago. It will have a salvage value of P100,000 two years from now. Using the following methods, determine book value at the end of 3d year, accrued depreciation at the end of 2nd year and annual depreciation cost at the end of 4 year. Show solutions for the asked years.An electronic balance costs ₱90,000 and has an estimated salvage value of ₱8,000 at the end of its 10 years life time. What would be the book value after three years?