A manufacturing plant installed a new boiler at a total cost of P 150,000 and isestimated to have a useful life of 10 years. It is estimated to have a scrap value atthe end of the useful life P 5,000. If interest is 15% compounded annually,determine the capitalized cost.P 318,867P 218,867P 197,610P 497,710

Given: Particulars Amount Plant cost -150,000 Life 10 Scrap value 5,000…

Answered: A manufacturing plant installed a new…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?
Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.
a manufacturing plant installed a new boiler at a cost of 150,000 and estimated to have a useful life of 10 years it is estimated to have a scrap value at the end of the useful life of 5,000 if the interest is 10% compounded annually determine the capitalized cost. Draw the diagram.
A new engine was installed by a textile plant at cost of P and projected to have a useful life of 15 years. At the end of its useful life, it is estimated to have a salvage value of P31,000. The capitalized cost is P360,000. Determine the first cost P if interest is 15% compounded annually.
The initial cost of a piece of construction equipment is P30,000,000 having a useful life of 10 years. The estimated salvage value of the equipment at the end of the useful life is P450,000. Determine accumulated depreciation at the end of 5th year using Sinking fund method, if interest rate is 8.2 % per year?
The first cost of a certain piece of equipment is 40,000OMR. It will have an annual operating cost of 10,000 OMR and a 6,000 OMR salvage value (scrap value) after its 5-year life, at an interest rate of 12% per year. Find the capitalized cost of the equipment. a) 171,811.23 OMR b) 167,932.75 OMR c) 181,212.005 OMR d) 125,213.62 OMR C a b MacBook Pro
The first cost of a certain piece of equipment is 35,000 OMR. It will have an annual operating cost of 15,000 OMR and a 5,000 OMR salvage value (scrap value) after its 5-year life, at an interest rate of 10% per year. Find the capitalized cost of the equipment. a) 212,113.21 OMR b) 234,139.24 OMR c) 152,110.36 OMR d) 112,210.21 OMR
A factory equipment has an initial cost of P175,000. Its salvage value after 8years is P18,000. As a percentage of the initial cost, what is the straiglt linedepreciation rate of the equipment.The annual depreciation of P25,000 has been reserve for a machine for amachine using straight line for 10 years. If the first cost is P300,000,determine the salvage value of the machine.
A machine has a first cost of P800,000 and a salvage value of P50,000 at the end of its life after 10 years. The annual saving for the use of the machine amount s to P124,900.97. If the annual maintenance of the machine is P4000 and the sinking fund to recover depreciation earns 6%, compute for the rate of return of investment. Answer: 8%
A new engine was installed by a textile plant at a cost of P353,000 and projected to have a useful life of 14 years. At the end of the useful life, it is estimated to have a salvage value of 31,000. Determine the annual cost if interest is 17% compounded semi-annually.
A new engine was installed by a textile plant at a cost of P388,000 and projected to have a useful life of 12 years. At the end of the useful life, it is estimated to have a salvage value of 37,000. Determine the annual cost if interest is 14% compounded semi-annually. Express your answer in whole number.

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