Icasting corporation purchased an equipment for P53,000.0 and delivery charges to the job site. The equipment has a n value of P5,000.00 against the purchase of a new equipm rmine the annual depreciation cost by the straight line meth rmine the annual depreciation cost by the sinking fund met ded annually. bought a calciner for P220,000.00 and uses it for 10years, ent. What is the bookvalue of the calciner after 5 years of u 000.00 for starightline method; P22,000 for textbook declini O for the double declining balance method.

Fundamentals Of Construction Estimating
4th Edition
ISBN:9781337399395
Author:Pratt, David J.
Publisher:Pratt, David J.
Chapter9: Pricing Construction Equipment
Section: Chapter Questions
Problem 6RQ
icon
Related questions
Question

 

 

Hello! Please help me answer this one. Please refer to the given picture/s below for the questions. Please read the instructions and directions very carefully. Double and triple check your answers, previous tutors got it wrong.

 

NOTE: Type only your answers. Please do not handwritten your answers. Make sure your formulas, solutions and answers' format are all correct.  

 

Depreciation Methods
1. A broadcasting corporation purchased an equipment for P53,000.00 and paid P1,500 for
freight and delivery charges to the job site. The equipment has a normal life of 10 years with a
trade-in value of P5,000.00 against the purchase of a new equipment at the end of the life.
a. Determine the annual depreciation cost by the straight line method.
b. Determine the annual depreciation cost by the sinking fund method. Assume interest at
6.5% compounded annually.
2. A plant bought a calciner for P220,000.00 and uses it for 10years, the life span of the
equipment. What is the bookvalue of the calciner after 5 years of use. Assume a scrap value
of P20,000.00 for starightline method; P22,000 for textbook declining balance method and
P20,000 for the double declining balance method.
3. A structure costs P12,000.00 new. It is estimated to have a life 5 years with a salvage value
at the end of life of P1,000.00. Determine the book value at the end of each year of life, the
depreciation during the 3rd year and book value at the end of 3 years. Use SYD Method.
4. An industrial plant bought a generator set from P90,000.00, other expenses including
installation amounted to P10,000.00. The generator set is to have a life of 17 years with a
salvage value at the end of life of P5,000.00. Determine the depreciation charge during the
13th year and the book value at the of 13 years.
Use: (a)SLM (b)SFM@12% (c)SYDM (d)DBM and (e)DDBM
5. A plastic extrusion machine cost P120,000 was purchased 4 years ago and is estimated to
have a service life of 6 more years with salvage value of P15,000. If it is to replaced by a new
machine and its trade-in-value is P40,000. Find the sunk cost if money worth 10% per annum.
Transcribed Image Text:Depreciation Methods 1. A broadcasting corporation purchased an equipment for P53,000.00 and paid P1,500 for freight and delivery charges to the job site. The equipment has a normal life of 10 years with a trade-in value of P5,000.00 against the purchase of a new equipment at the end of the life. a. Determine the annual depreciation cost by the straight line method. b. Determine the annual depreciation cost by the sinking fund method. Assume interest at 6.5% compounded annually. 2. A plant bought a calciner for P220,000.00 and uses it for 10years, the life span of the equipment. What is the bookvalue of the calciner after 5 years of use. Assume a scrap value of P20,000.00 for starightline method; P22,000 for textbook declining balance method and P20,000 for the double declining balance method. 3. A structure costs P12,000.00 new. It is estimated to have a life 5 years with a salvage value at the end of life of P1,000.00. Determine the book value at the end of each year of life, the depreciation during the 3rd year and book value at the end of 3 years. Use SYD Method. 4. An industrial plant bought a generator set from P90,000.00, other expenses including installation amounted to P10,000.00. The generator set is to have a life of 17 years with a salvage value at the end of life of P5,000.00. Determine the depreciation charge during the 13th year and the book value at the of 13 years. Use: (a)SLM (b)SFM@12% (c)SYDM (d)DBM and (e)DDBM 5. A plastic extrusion machine cost P120,000 was purchased 4 years ago and is estimated to have a service life of 6 more years with salvage value of P15,000. If it is to replaced by a new machine and its trade-in-value is P40,000. Find the sunk cost if money worth 10% per annum.
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Stresses in saturated soil without seepage
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, civil-engineering and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Fundamentals Of Construction Estimating
Fundamentals Of Construction Estimating
Civil Engineering
ISBN:
9781337399395
Author:
Pratt, David J.
Publisher:
Cengage,