8. Some seed cleaning equipment was purchased in 2009 for $8,700 and is depreciated by the double declining balance (DDB) method for an expected life of 18 years. What is the book value of the equipment at the end of 2014?

8. Some seed cleaning equipment was purchased in 2009 for $8,700 and is depreciated by the double declining balance (DDB) method for an expected life of 18 years. What is the book value of the equipment at the end of 2014?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: An industrial plant bought a generator set for P90,000. Other expenses including installation…

A: * SOLUTION :- The given data is,

Q: barcode reading device has an installed cost basis of $22,100 and an estimated service life of…

A: In the given case of 200% declining balance method, depreciation is computed as follows -…

Q: Daily Enterprises is purchasing a $9.8 million machine. It will cost $55,000 to transport and…

A: The term depreciation refers to an accounting method used to allocate the cost of a tangible or…

Q: Given: Desk purchased January 10 for $3,000; 8-year useful life; $600 salvage value. Calculate…

A: Given Purchasing price or basis (B) =$3000 Useful life =8 year Salvage value =$600 Depreciation…

Q: A certain copier machine cost P150,000 with a trade-in value of P15,000 after making 800,000 copies.…

A: According to the unit of production based depreciation method, depreciation charge is calculated as…

Q: A piece of equipment costs $53,000. Its estimated salvage value after eight years is $13,000. A.…

A: Given: Cost of equipment=$53000 Salvage value=$13000 Life=8 years

Q: A rice production company has purchased its milling equipment. The cost of this is 5,000,000.…

A: Given The initial cost of equipment (P)=5,000,000 Salvage value (F)=1,000,000 Life =5 years Book…

Q: market value

A: Market price refers to the modern-day worth or charge of an economic asset, commodity, or property…

Q: An industrial plant bought a generator set for P87,504.00. Other expenses including installation…

Q: The first costs of an equipment is P 65,000 and a salvage value of P 3,000 at the end of its 6- year…

A: First cost of the equipment (FC) =P65000 Salvage value (S) =P 3000 Useful life (n) =6 years r=10% We…

Q: A contractor is considering the purchase of a set of machine tools at a cost of $50,000. The…

A: Present worth represent the value of asset or any goods and services after the depreciation and the…

Q: help please answer in text form with proper workings and explanation for each and every part and…

A: Step 1: Straight-line method Annual depreciation expense = (Original cost - Residual value)/Useful…

Q: Six years ago, a company purchased $30,000 of equipment. The equipment has just been sold for $5000.…

A: Present Worth is defined as the current value of future cashflows It can be calculated as :…

Q: A cooling tower costs P91,189 will have an estimated life of 9 years. Using double-declining balance…

A: Depreciation expense need not increase as a result of double rate depreciation. Instead, the asset…

Q: n order to study the value of the truck that you use in your construction business, you are using…

A: Given : Life=8 years Cost of Truck=$170000 Estimated market value in Year 8=$10000 To find :…

Q: NPV, IRR, MIRR

A: Capital Budgeting refers to the process of allocating the planned capital expenditure to various…

Q: Winthrop Company has an opportunity to manufacture and sell a new product for a five-year period. To…

A: NET PRESENT VALUE Net present value (NPV) is a financial measure that calculates the difference…

Q: An asset purchased for $50,000 has a depreciable life of five years, and it has a terminal book…

A: Depreciation refers to fall/decrease in the value of an asset. There are various methods of…

Q: Q1/ Purchased price mechanism of ($130,000), and an estimated economic life (8) years estimated…

A: Calculation of depreciation during second year and fifth year and book value during fourth year and…

Q: A company purchased machinery for $ 100,000 on January 1, 2011. The machinery has a useful life of 5…

A: Given: Purchase of machinery=$100000 Useful life=5 year Salvage Value=$10000

Q: Show manual solutions and depreciation schedule/table. An equipment costing P250,000 has an…

A: The declining balance method is a sped-up deterioration process for recording bigger devaluation…

Q: A new tablet cost $1,323 with a negligible salvage value in 3-years. Using double declining balance…

A: Given the book value = $1323 Time = 3 years

Q: An asset has an expected life of 15 years, but is to be depreciated using a MACRS 7-year property…

A: The cost basis of a property is the original purchase price plus any additional costs associated…

Q: A lumber company purchases and installs a wood chipper for $205,731. The chipper has a useful life…

A: Depreciation can be understood in two main ways:1. Actual decrease in value:Depreciation refers to…

Q: alo

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: A machine was purchased for Rupees 1,00,000, the estimated useful life of which is 8 years. The…

A: The written Down Value (WDV) method is a depreciation technique that applies a constant depreciation…

Q: 41. An equipment costs P100,000.00 and the salvage value is 15% of the original cost after 25 years.…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: 9.16 You purchased a molding machine at a cost of $88,000. It has an estimated useful life of 12…

A: Straight line basis is a method of calculating depreciation and amortization, the process of…

Q: A new drilling mud pump was purchased and placed in service by a petroleum drilling company. Its…

A: Given; Initial cost= $250000 Salvage value= $15000 Life= 15 years

Q: John bought a machine set for P90,000. Other expenses including installation amounted to P10,000.…

A: Disclaimer- “Since you have asked multiple questions, we will solve the first three questions for…

Q: An equipment costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the…

A: Given, Cost of Equipment : P250,000 Time Period : 15 years Book Value : P30,000 Straight-Line…

Q: 9,369. It can be sold for $12,000, but it could be sed for three more years, at the end of which me,…

A: Salvage value is the estimated resale value of an asset at the end of its useful life. It is…

Q: Labor costs, materials, all direct and indirect costs, and facilities and productive equipment with…

A: Depreciation is the value of used asset. It is simple giving some cost to a good over its useful…

Q: 9.16 You purchased a molding machine at a cost of $88,000. It has an estimated useful life of 12…

Q: BlastCo Analytics needs to purchase a new metal shaper. BlastCo’s after-tax MARR is 12% and the…

A: Annual worth is a financial metric used in engineering economics and project evaluation. It…

Q: An equipment has a first cost of 20,000 and salvage value of 1,000 at the end of 10yrs. Determine…

A: First Cost = 20,000 Salvage Value = 1,000 n = 10 years Book Value after 6 years = ?

Q: HOUR OUTPUT METHOD An electric bulb bought for P100 is guaranteed to be used for 50 hours. The…

A: Ans in step 2

Q: 41. An equipment costs P100,000.00 and the salvage value is 15% of the origina cost after 25 years.…

A: Since you have posted multiple questions as per the guidelines we can solve only one question per…

Q: A machine costing P45.000 is estimated to have a salvage value of P4,350 when retired attheendof6…

A: Answer: Given that: A machine costing P45,000 is estimated to have a salvage value of P4,350…

Q: Desk purchased January 12 for $2,000; 8-year useful life; $600 salvage value. Calculate…

A: Purchasing price or basis (B) = 2000 Useful life =8 year Salvage value =$600 Depreciation method=…

Question

8. Some seed cleaning equipment was purchased in 2009 for $8,700 and is depreciated by the double
declining balance (DDB) method for an expected life of 18 years. What is the book value of the equipment
at the end of 2014? **,

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

617 8. A machine has a first cost of P200,000 with a scrap value of P25,000 at the end of Its economic life of 10 years. Find its book value after 8 years using the Double Declining Balance Method. 出

Exerei Dude & Sons have just purchased a machine for $325,000 and an additional $25,000 charge for installation onto a truck for mobility. The expected life is 30 years with a salvage value of 10% of the purchase price. For classical straight-line depreciation determine the first cost, salvage value, annual depreciation amounts and book value after 20 years?
PLEASE USE EXCEL AND SHOW FORMULAS Six years ago, a company purchased $30,000 of equipment. The equipment has just been sold for $5000. The equipment was depreciated using 50% bonus depreciation / 50% MACRS (using a 5-year recovery period). The actual savings due to the purchase of the equipment is shown below. The firm's MARR is 12% and it's tax rate is 25%. What is the after-tax present worth of the investment? Year 1 2 3 4 5 6 Savings 5000 6000 7000 7000 4000 3000
BlastCo Analytics needs to purchase a new metal shaper. BlastCo's after tax MARR is 12% and the corporate tax rate is 54%. A metal shaper is a CCA Class 8 asset. The remaining data are contained in the table below. Model Flex First Cost Economic Life Annual Net (Years) Savings $100,000 5 Blender $120,000 5 Flextastic $200,000 5 $50,000 $55,000 $75,000 Salvage Value $20,000 $25,000 $100,000
Twelve years ago, an industrial facility bought a boring machine for P65,000. The estimated life of this machine is25 years and a depreciation reserve had been placed based on this. The price of the latest model is P125,000 andthe facility owner wants to replace the machine with this latest model. The old unit can be sold for P18,000. Howmuch new capital will be required for the purchase?
A piece of machinery at a maunfacturing plant has a cost basis of $44,000, and a salvage value of $13,000 after producing 32,000 units. Using units-of-production depreciation, what is the allowed depreciation charge per unit. Express your answer in $ to the nearest $0.01.
A machine worth P10,000 depreciates in value each year by 15% of its value at the beginning of that year. Find its book value when it is 10 years old. PLEASE ANSWER WITH COMPLETE SOLUTION
An American manufacturing company has new equipment with a first cost of $ 25,000, an estimated salvage value of $ 1,500 and a recovery period of 9 years. Using the SYD method what is the book value at the end of the 5th year? a. $ 9, 333.33 b. $ 6, 722.22 c. $ 5, 221.93 d. $ 4, 111.11
You purchased a molding machine at a cost of $88,000. It has an estimateduseful life of 12 years with a salvage value of $8,000. Determine the following·:(a) The amount of annual depreciation computed by the straight-line method.(b) The amount of depreciation for the third year computed by using the double-declining-balance method.
No handwritten please...
A new barcode reading device has an installed cost basis of $24,160 and an estimated service life of eight years. It will have a zero salvage value at that time. The 200% declining balance method is used to depreciate this asset. a. What will the depreciation charge be in year eight? b. What is the book value at the end of year seven? c. What is the gain (or loss) on the disposal of the device if it is sold for $3,400 after seven years?
If PSK Engineering had a CFAT of $750,000, charged depreciation of $400,000, and had a Te of 36%, what was PSK’s CFBT?