Find the appraisal value of the mill using straight-line depreciation at the end of 12 years.
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8.) A tax- and duty-free importation of a 30-horsepower sand mill for paint
costs
Foundation and installation costs were ₱30,000. Other incidental expenses amount to
₱25,000. Salvage value of the mill is estimated to be ₱65,000 after 20 years. Find the
appraisal value of the mill using straight-line
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- A tax and duty free importation of a 30-horsepower sand mill for paint manufacturing costs P360,000, CIF Manila. Bank charges, arrester and brokerage cost P5,000. Foundation and installationcosts were P25,000. Other incidental expenses amount to P20,000. Salvage value of the mill isestimated to be P60,000 after 20 years. Find the appraisal value of the mill using straight-line depreciation at the end of a.) 10 years, b.) 15 yearsA tax and duty free importation of a 30 HP sandmill (for paint manufacturing) cost ₱360,000, CIF Manila. Bank charges, arrastre ₱25,000. Other incidental expenses amounted to ₱20,000. Salvage value of the mill is estimated to be ₱60,000 after 20 years. Find the appraisal value of the mill, using straight-line depreciation, at the end of (a) 10 years and (b) 15 years? : (a) ₱235,000 (b) ₱147,500An asset with its purchasing price of Rs. 530,000 was imported from its manufacturing place holding Rs. 80,000 as carrying cost. Installation charges for that asset are Rs, 27,500. Tax paid to the government is 30% of its total cost till it gets ready and useful for business operations. Manager’s fee was also paid of Rs. 30,000. Annuity value for one rupee is 0.3178. Interest rate was given at 8%. Depreciate the asset for 5 years using SLM annuity method
- An energy production company has the following information regarding the acquisition of new gasturbine equipment. Purchase price = $780,000 Trans-oceanic shipping and delivery cost = $4300 Installation cost (1 technician at $1600 per day for 4 days) = $6400 Tax recovery period = 15 years Book depreciation recovery period = 10 years Salvage value = 10% of purchase price Operating cost (with technician) = $185,000 per year The manager of the department asked your friend in Accounting to enter the appropriate data into the tax-accounting program. What are the values of B, n, and S in depreciating the asset for tax purposes that he should enter?A firm is planning to purchase a new machine costing ₱2,800,000 with freight and installation costs amounting to 135,000. The old unit to be traded-in will be given a trade-in allowance of ₱260,000. Other assets that are to be retired as a result of the acquisition of the new machine can be salvaged and sold for ₱52,000. The loss on the retirement of these assets is ₱50,000 will reduce taxes by ₱20,000 which is based on a tax rate of 40%. If the new machine is not purchased, extensive repairs on the old machine will have to be made at an estimated cost of ₱400,000. This cost can be avoided by purchasing the new machine. Additional gross working capital of ₱350,000 will be needed to support operations planned with the new machine. The net cost of investment would be?A tax and duty-free importation of a 30hp sand mill for paint manufacturing costs P360,113. Bank charges arrester and brokerage cost P5,064. Foundation and installation cost were P25,802. Other incidental expenses amount to P23,060. Salvage value of the mill is estimated to be P61,021 after 30 years. Determine the following: a. Rate of depreciation. b. Depreciation after 11 years. c. Book value after 19 years.
- For P450,000, Drax Corporation purchased a new machine with an estimated useful life of five years with P10,000 salvage value. Working capital needed for the machine after 2 years is P20,000 which will be released after 5 years. The machine is expected to produce net income from operations after income tax of 40%. First year - P160,000; Second year - P140,000; Third year - P180,000; Fourth year - P120,000; Fifth year - P100,000. Drax will use the straight-line method to depreciate the new machine. (round-off to 4 decimal places for the PV factor) Discount rate was 10%. What is the profitability index of the machine? A. 1.8993 B. 1.9154 C. 1.9134 D. Answer not given E. 1.9297On 1/1/2020, the Horizon Industrial Company purchased a machine on the account whose price is 850,000 dinars, and it is subject to a sales tax of 10,000 dinars. The company paid in cash the fees for transporting and installing the machine 60,000 dinars, the costs of making a special base for the machine with electricity extensions 40,000 dinars, and the costs of conducting the start-up experiments 140,000 dinars. The company estimated the life span of the machine at five years, and its salvage value is 200,000 dinars. The machine is depreciated according to the straight-line method.On 1/1/2021, the company conducted a coverage test for this machine and found that the fair market value of the machine minus its selling costs is 580,000 dinars and that the net present value of the cash flows is expected to be obtained from using the machine is 660,000 dinars. And that the remaining life of the machine is 3 years, not 4 years.On December 31, 2022, the company conducted a coverage test for…To package its products, a company purchased an automatic packaging machine for P600,000. Freight, insurance, and installation charges amounted to P80,000.00. The machine is expected to be sold for P120,000.00 after packaging 320,000 units. If the machine packaged 40,000 units in its first year, 55,000 in its second year, and 48,000 units in its third year, determine a) the depreciation charge for the third year, (Ans. P84,000.00) b) the book value of the machine at the end of the third year. (Ans. P429,750.00)
- San Jose Builders imported a backhoe for his job, paying P2,500,000.00 to the manufacturer. Freight and insurance charges amounted to P80,000.00; customs broker's fee and arrastre services is P50,000.00; taxes, permits, and other expenses , P60,000.00. If San Jose Builders estimates the life of the backhoe to be 10 years with a salvage value of P600,000.00, determine the book value at the end of 6 years using sinking fund formula at 8%.A tax and duty free importation of a 30 horse power sand mill for paint manufacturing cost 400,000 CIF manila. Bank charges, arrester and brokerage cost 6,000. Foundation and installation costs were 30,000. Other incindent expenses amount to 25,000. Salvage value of mill is estimated to be 65,000 after 20 years. Find the aporaisal value of the mill using straight line depreciation at the end of 12 years.The Kimchi Company imported a new machine at a peso equivalent of P1,320,000. The company has to pay additional cost of importing the asset such as P40,000 import duties and P60,000 non-refundable purchase taxes. Costs of transporting the asset was P20,000 and cost of preparing the asset for its intended use include P12,000 installation and P8,000 testing and trial run costs. How much is the initial cost of the new machine?Required to answer. Single choice.