Pull System Push System Robot and support equipment first cost, $ - 1,500,000 -2,250,000 Annual M&O cost, - 700,000 $ per year Rebuild cost in year 3, $ -600,000 - 500,000 Salvage value, $ 100,000 50,000 Estimated life, years 8 8
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The Briggs and Stratton Commercial Division designs and manufactures small engines for golf turf maintenance equipment. A robotics-based testing system will ensure that their new signature guarantee program entitled “Always Insta-Start” does indeed work for every engine produced. Compare the two systems at MARR = 10% per year. Solve using (a) tabulated factors, and (b) single-cell spreadsheet functions.
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- Acquisition Cost Desert State University installed a HD video board with an invoice price of $5,000,000 in its football stadium. Desert State paid an additional $100,000 of delivery and installation costs relating to this board. Because this is one of the largest boards in the world, Desert State also installed ten 5-ton air conditioning units at a total cost of $120,000 to keep the board cool in the desert heat. Required: Determine the cost of the video board.IMPACT OF IMPROVEMENTS AND REPLACEMENTS ON THE CALCULATION OF DEPRECIATION On January 1, 20-1, two flight simulators were purchased by a space camp for 77,000 each with a salvage value of 5,000 each and estimated useful lives of eight years. On January 1, 20-2, the hydraulic system for Simulator A was replaced for 6,000 cash and an updated computer for more advanced students was installed in Simulator B for 9,000 cash. The hydraulic system is expected to extend the life of Simulator A three years beyond the original estimate. REQUIRED 1. Using the straight-line method, prepare general journal entries for depreciation on December 31, 20-1, for Simulators A and B. 2. Enter the transactions for January 20-2 in a general journal. 3. Assuming no other additions, improvements, or replacements, calculate the depreciation expense for each simulator for 20-2 through 20-8.Given the problem: Conduits made of Timber First Cost $ 50,025.34 Estimated Life 13 years Scrap Value $ 2,992 Annual Maintenance $ 1,301 Interest 0.086 What is the Capitalized Cost?
- Conduits made of Steel First Cost Php 80,331 Estimated Life 40 years Scrap Value none Annual Maintenance Php 237 Interest 0.074 What is the Capitalized Cost? *4 decimal points*Create a units of production depreciation Cargo Van Price $26,000 Machine Price $48,000Salvage value $2,000 Salvage value $3,000Useful life 10 years Useful life 8 yearsTotal miles 90,000 Total hours 13,000Yr 1 miles 12,100 Yr 1 hours 1,250Yr 2 miles 9,400 Yr 2 hours 1,46RLC Manufacturing is planning to purchase a cutting equipment. Information are as follows: Equipment 1 Equipment 2 First Cost P 12,000 P 18,000 Salvage Value P 600 P 2,000 Annual Operation P 3,200 P 2,500 Annual Maintenance P 1,200 P 1,000 Taxes & Insurance 3% 3% Life, years 10 15 Money is worth at least 16%. Which equipment should be selected? Use: Annual Cost Method
- Cost of asset: $120,000, purchased on the first day of Year 1. Estimated Useful life: 7 years Estimated Total Units of activity : 10,000 units Estimated Salvage value: $ 15,000 Units of Production in Year 1 : 2000 units The company adpoted straight line method for depreciation, the asset was disposed on the first day of Year 3 for $93,000. Gain on disposal:$______________Lotus contractors construction. Building cost= $13650000. Weighted average accumulated expenditures = $5600000 Actual interest was $562000, and avoidable interest was $272000. If the salvage value is $1150000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is A.$319300 B.$348050 C.$326100 D.$459300. Ataxanddutyfreeimportationofa30-horsepowersandmillforpaint manufacturing costs P360,000, CIF Manila. Bank charges, arrester and brokerage cost P5,000. Foundation and installation costs were P25,000. Other incidental expenses amount to P20,000. Salvage value of the mill is estimated 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 years
- Problem 5 - Property Plant and Equipment Requirements: Calculate the (A) Cost Basis, (B) Straight line, and (C) Activity Method for Depreciation Purchase of a Truck Given cost base Price of $ 110,000 Tax and delivery $ 10,000 Salvage Value $ 20,000 Asset Life 5 years Estimated Mileage Traveled per year Yr 1 50,000 Yr 2 40,000 Yr 3 35,000 Yr 4 40,000 Yr 5 45,000 210,000 Miles (A) Cost Basis Calculations: (B) Straight Line Method Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Calculations: (C) Activity Method Yr 1 Yr 2 Yr 3 Yr 4 Yr 5…3. An Industrial plant bought a generator set for P90,000. Other expenses including installation amounted to P10,000. The generator is to have 17 years with a salvage value at the end of life of P5,000. Determine the book value at the end of 12 years by the following method;Declining balance method:P12,068P14,393P10.118P8,483Sinking fund method at 12% P59.860P53,100P45,529P65.896 SHOW YOUR SOLUTIONS PLEASECost of assets: $150,000 Estimated Useful life: 5 years Estimated Total Units of activity : 10,000 units Estimated Salvage value: $ 2100 Units of Production in Year 1 : 500 units Double Declining Balance method: depreciation expense for year 1 is $_______________