Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 9, Problem 6P
To determine
Identify the cost basis.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
A radio service panel truck initially costs P 56,000. If resale value at the end of the fifth year is estimated at P 15,000. By means of the Declining Balance Method, determine the yearly depreciation charge for the first and second years.
ABC Company makes its policy that for every new piece of equipment purchased, the annual depreciation should not exceed 25% of the first cost at any time without salvage value. determine the length of service if the depreciation used is the Double Declining Balanced method.
An electric bulb bought for P100 is guaranteed to be used for 50 hours. The certain company uses the said bulb 10 hours a day. If there is no scrap value for the bulb, compute the daily depreciation, and create the depreciation table throughout its economic life
Chapter 9 Solutions
Contemporary Engineering Economics (6th Edition)
Ch. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4PCh. 9 - Prob. 5PCh. 9 - Prob. 6PCh. 9 - Prob. 7PCh. 9 - Prob. 8PCh. 9 - Prob. 9PCh. 9 - Prob. 10P
Ch. 9 - Prob. 11PCh. 9 - Prob. 12PCh. 9 - Prob. 13PCh. 9 - Prob. 14PCh. 9 - Prob. 15PCh. 9 - Prob. 16PCh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Prob. 21PCh. 9 - Prob. 22PCh. 9 - Prob. 23PCh. 9 - Prob. 24PCh. 9 - Prob. 25PCh. 9 - Prob. 26PCh. 9 - Prob. 27PCh. 9 - Prob. 28PCh. 9 - Prob. 29PCh. 9 - Prob. 30PCh. 9 - Prob. 31PCh. 9 - Prob. 32PCh. 9 - Prob. 33PCh. 9 - Prob. 34PCh. 9 - Prob. 35PCh. 9 - Prob. 36PCh. 9 - Prob. 37PCh. 9 - Prob. 38PCh. 9 - Prob. 39PCh. 9 - Prob. 40PCh. 9 - Prob. 41PCh. 9 - Prob. 42PCh. 9 - Prob. 43PCh. 9 - Prob. 44PCh. 9 - Prob. 45PCh. 9 - Prob. 46PCh. 9 - Prob. 47PCh. 9 - Prob. 48PCh. 9 - Prob. 49PCh. 9 - Prob. 50PCh. 9 - Prob. 51PCh. 9 - Prob. 52PCh. 9 - Prob. 53PCh. 9 - Prob. 1STCh. 9 - Prob. 2STCh. 9 - Prob. 3STCh. 9 - Prob. 4ST
Knowledge Booster
Similar questions
- ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not excess 20% of the first cost at any time with no salvage value. Determine the length of the service life necessary if the depreciation used is the SYD method.arrow_forwardABC Corporation makes its policy that for every new equipment purchased, the annual depreciation should not exceed 20% of the first cost at any time without salvage value. Determine the length of service if the depreciation used is the SOYD Method.arrow_forwardAn asset is purchased for P 120,000,00. Its estimated life is 10 years, after which it will be sold for P 12,000,00. Find the depreciation for the second year using SOYD method.arrow_forward
- Centronix Corporation purchased new equipment with an estimated useful life of five years. The cost of the equipment was $200,000, and the residual (salvage) value was estimated to be $25,000. In purchasing the new equipment, an old machine was traded in that had an original cost of $180,000, and had been depreciated at the rate of $18,000 a year. The trade-in allowance was $21,000, and accumulated depreciation amounted to $144,000 at the time of the exchange. What should be the cost basis of the new equipment for tax depreciation purposes?(a) $200,000(b) $215,000(c) $175,000( d) $190,000arrow_forwardA machine costing P 770,339 is estimated to have a life of 10 years. If the annual rate of depreciation is 0.18, determine the total depreciation at the year 9 using a constant percentage of the declining balance method.arrow_forwardZach’s Corporation purchased a Jacquard machine for P6M, freight and installation charges amounted to 3% of the purchase price. If the machine will be depreciated over a period of 10 years with a salvage value of 6%, determine the depreciation cost during the 8th year using the Straight line methodarrow_forward
- Bristol-Myers-Squibb purchased a tablet-forming machine in 2010 for $750,000. The company planned to use the machine for 10 years and then sell it for $50,000; however, due to rapid obsolescence, it will be retired after only 6 years in 2016. (a) Determine the capital investment remaining when the asset was prematurely retired. (b) If the asset is sold at the end of 6 years for $175,000, determine the capital investment loss based on straight line depreciation. (c) If the new-technology machine has an estimated cost of $260,000, how many more years would the company have had to depreciate the currently-owned machine to make its book value and the first cost of the new machine equal each other?arrow_forwardA manufacturing company makes it a policy that for every new equipment purchased, the annual depreciation cost should not exceed 25% of the first cost at any time without salvage value. Determine the length of service life if the depreciation used is the SYD methodarrow_forwardA machine costing P540,000 has a life expectancy of 12 years with a salvage value of P40,000. Using the Depreciation by Sinking Fund Method (SFM), what is the depreciation in the fourth year? Assume i=8%.arrow_forward
- An industrial plant bought a generator set for P90,000. Other expenses including installation amounted to P10,000. The generator set is to have a life of 17 years with a salvage value at the end of life of P5,000. Determine the depreciation charge during the 13th year and the book value at the end of 13 years using the (a) declining balance method (b) double declining balance method (c) sinking fund method at 12% interestarrow_forwardA crane rental company has acquired a new heavy-duty crane for $280,000. The company calculates depreciation on this equipment on the basis of number of rentals per year, and the salvage value of the crane at the end of its 12-year life is $40,000. If the crane is rented an average of 133 days per year, what is the depreciation rate per rental? The depreciation is per day of rent. (Round to the nearest dollar.)arrow_forwardA gasoline engine has an annual depreciation of P13,000 for 15 years and salvage value of P20,000. Using sinking fund depreciation with 15% interest. Determine the first cost of the engine.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning