During its acquisition, a machine was bought for P150,000. After 12 years of life, its salvage value was given at P20,000. What will be its book value after 6 years using the SLM?
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- A brand new car costs ₱500,000 and the salvage value is 10% of the original cost after 20 years. Using SLM, determine the book value of this car after 5 years.A piece of certain equipment has the first cost of ₱90,000 and a salvage value of ₱4,500 at the end of 10 years. Determine its book value at the end of 8 years using: Straight-line method. Sinking fund method at 5% interest.PLEASE WRITE YOUR SOLUTION ON A PAPER, THANK YOU A Contractor imported a bulldozer for his job, paying P 350,000 to the Manufacturer. Freight andInsurance charges amounted to P 18,000; customs’ broker’s fees and arrastre services, P 8,500;taxes, permits and other expenses, P 35,000. If the contractor estimates the life of the bulldozer tobe 10 years with a salvage value of P 20,000, determine the book value at the end of 8 years, a. using the Double Declining Balance Method. b. using the Declining Balance Method. c. using the Sinking Fund Method, i = 10% d. using the Sum of the Years Method
- The coop bought an equipment for P 60,000 other expense including installations amounted to P 5,000. The equipment is expected to have a life of 14 yrs. with a salvage value of 10% of the original cost .Determine the book value at the end of 15 years . By ( a ) Straight line method and ( b ) Sinking fund method at 12% interest.Hagar Industrial Systems Company (HISC) is trying to decide between two different conveyor belt systems. System A costs $275,000, has a 4-year life, and requires $81,000 in pretax annual operating costs. System B costs $355,000, has a 6-year life, and requires $75,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Suppose the company always needs a conveyor belt system; when one wears out, it must be replaced. Assume the tax rate is 22 percent and the discount rate is 9 percent. Calculate the EAC for both conveyor belt systems. Please lay out initial input of the problems and your calculations of cash flow, NPV, and EAC in an excel format.A machine. purchased for $50,000, has a depreciable life of five years. It willhave an expected salvage value of $4.500 at the end of the depreciable life.Using the straight-line method, what is the book value at the end of year 2?(a) $27.500(b) $20.000(c) $3 1.800(d) $25.000
- An asset for drilling was purchased and place in service by a petroleum production company. Its initial investment is P60,000 and it has an estimated salvage value of P12,000 at the end of an estimated useful life of 14 years. Compute the book value at the end of the 5th year of life using SLM. a. P48,257.00 b. P42,857.00 c. None of the above d. P45,572.00An electronic balance costs BD9,000 and has an estimated salvage value of BD800 at the end of its 10 years life. What would be the book value after three years using the DDB? a. BD 4,608.00 b. BD 5,000.00 c. BD 5,100.00An 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: d. Declining Balance method e. Sum of Years Digits (SYD) method
- A special-purpose milling machine was purchased four years ago for $20,000. It was estimatedat that time that this machine would have a life of10 years, a salvage value of $1,000, and a cost ofremoval of $1,500. These estimates are still good.This machine has annual operating costs of $2,000,and its current book value is $13,000 (based on“alternative MACRS,” a straight-line depreciationwith a half-year convention with zero salvage value).If the machine is retained for its entire 10-year life,the remaining annual depreciation schedule would be$2,000 for years 5 through 10. A new machine that ismore efficient will reduce operating costs to $1,000,but it will require an investment of $12,000. The lifeof the new machine is estimated to be six years with asalvage value of $2,000. The new machine would fallinto the five-year MACRS property class. An offerof $6,000 for the old machine has been made, andthe purchaser would pay for removal of the machine.The firm’s marginal tax rate is 40%, and…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. Double declining balance method is used to calculate the depreciation cost. a. What is the book value of the asset at the end of 5 years? b. What is the depreciation amount in the third year?A recapping plant is planning to acquire a new Diesel generating set to replace its resent unitwhich they run during brownouts. The new set would cost ₱ 135,000 with a five (5) year-life,and no estimated salvage value. Variable cost would be ₱ 150,000 a year.The old generating set has a book value of ₱ 75,000 and a remaining life of 5 years. Itsdisposal value now is ₱ 7,500 but it would be zero after 5 years. Variable operating cost wouldbe ₱187,500 a year. Money is worth 10%.Which is profitable, to buy new generator or retain the old set? Support answer using:a) Equivalent Uniform Annual Cost (EUAC) Method