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When should the eventual salvage value of an asset be estimated?
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- 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 MethodWhat does it mean when recyclers gather containers until their marginal costs are equal to the container’s respective redemption prices?The existing asset’s economic life can be found if certain estimates about it can be made. Assuming those estimates prove to be exactly correct, one can accurately predict the year when the existing asset should be replaced, even if nothing is known about potential new assets. True or false? Explain.
- If the property will be immediately be replaced at a market value of 15,000, what will its sunk cost?Show your complete solution. 19. A machine cost 7,350 has a life of 8 years and has a salvage value of 350 at the end of a years. Determine its book value at the end of 4 years using Constant- Percentage of Declining Value.The economic service life of an asset is:a. the length of time required to recover the first cost of the asset.b. the time when the operating cost is at a minimum.c. the time when the salvage value goes below 25% of the first cost.d. the time when the AW of the asset is at a minimum.
- Upon purchase of a brandnew asset, the capitalized cost would be different from its replacement value due to? a. Directly attributable costs b. Cost of Capital c. Normal wear and tear from usage d. Cost of illiquidityWhat is the annual worth of the problem?Compare the defender and challenger based on the opportunity-cost?