43. An asphalt and aggregate mixing plant having a capacity of 50 cu.m every hour costsP2500000. It is estimated to process 800,000 m³ during it's life. During a certain year, itproduced 60,0000 m³.. Using the service ouput method, if its scrap value is P100000,determine the total depreciation during the year.a. 180000b. 170000c. 160000d. 200000e. None of the above

Depreciation for the Year = (Cost - Scrap Value) x Production for the Year / Total Capacity

Answered: 43. An asphalt and aggregate mixing…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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i.3
A coal mine expected to contain 6.5 million tons of coal was purchased at a cost of $30 million. One million tons of coal for steel making are produced this year. The gross income for this coal is $15,000,000, and operating costs (excluding depletion expenses) are $1,850,000. If you know that coal has a 10% depletion allowance, what will be the depletion allowance? (a) Cost depletion.The cost depletion for the year is $? (b) What is the percentage of depletion
am. 117.
15. Hobie Corp. has the following information for the purchase of a new machine in its manufacturing process: Cost of the machine Expected useful life-the cost of the machine will be depreciated on a straight-line basis to a terminal disposal value of zero. Working capital investment upon machine purchase (fully recovered at the end of the useful life) Annual cost savings with the new machine Machine's expected salvage value at the end of four years Required rate of return Hobie's tax rate a. Calculate the net present value (NPV) of the project (round your solution to dollars). $ 225,000 4 years c. Should the project be accepted or rejected? Why? $12,000 $ 66,000 $8,000 8% 15% b. What is the payback period of the project (round your solution to two decimal places)?
30-31
An Americana Airway jet costs $40,000,000 and is expected to fly 400,000,000 miles during its 8-year life. Residual value is expected to be zero because the plane was used when acquired. If the plane travels 23,000,000 miles the first year, how much depreciation should Americana Airway record under the units-of-production method? (Round the depreciation per unit to two decimal places) OA. $5,000,000 OB. $10,000,000 OC. $2,300,000 OD. Cannot be determined from the data given CHED
19. Solve the given question and give the correct answer.
Question atatched
15. Two machines A and B are being considered for use in a small manufacturing plant. Machine A has a first cost of P125 000.00, an estimated life of seven years and a salvage value of P12 500.00. Annual operations and maintenance cost is estimated to be P10 000.00. The corresponding figures of machine B are P175 000.00, seven years, P25 000.00, and P8500.00. Using future worth analysis and an interest rate of 14%, specify which machine should be preferred. (Ans. Select Machine A, - P407.588.51)
93. A machine costing P720,000 is estimated to have a life of 10 years. If the annual rate of depreciation is 22%, determine the total depreciation using a constant percentage of the declining balance method. A. P679,454.27 В. Р532,825.73 С. Р432,725.45 D. P764,243.33
40. An asset that cost P15,000 new has an estimated scrap value of P2,000 at the end of 10 years using constant percentage method, determine the rate of depreciation and the Book value at the end of 8 years. a. K=18.25%; BV = 3000 b. K=20.10; BV = 2934.40 c. K=18.25%; BV = 2992.22 d. K= 20.10% BV = 3000 e. None of the above
66

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