Compute the book value of an asset with FC of ₱4 500 000 after 7th year if it has useful life of 13 years and annual depreciation rate of 7%. Use declining balance method. Prepare the depreciation table and show Complete solution

Q: 2. The following are the relevant data of two alternative machines are shown in the table below.…

A: Capital budgeting is used by the business firms to determines the gains from different capital…

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

A: N = 15 years Cost = 250,000 Book Value at end = 30,000 SLM Depreciation Method

Q: An asset with a purchase price of $486,966 falls in the 5-year MACRS asset class. The asset will be…

A: The book value is calculated as the cumulative depreciation over 3 years multiplied by asset cost

Q: A piece of equipment has a first cost of P500,000 and the cost of installation is P30,000. If the…

A: Depreciation (Straight Line Method) = (Cost-Salvage Value) / Useful life Depreciation (Sinking Fund…

Q: PS Builders Co purchases a new excavator costing £48,000. Its expected useful life is ten years, at…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Given: Co = 10,000 CN = 500 n = 5 years Compute the annual depreciation charge and book value using…

A: Under declining balance method Rate of Depreciation = 1 - Salvage valueCostYears

Q: Joey has a new project has an initial cost of $190,000. The equipment will be depreciated on a…

A: Average accounting return is computed using formula = Average annual income / Average…

Q: A forklift is worth 3.2M Php. It has a lifetime of 12 years and has a SV=1.1M. How much is it wortg…

A: Major methods of computing depreciation are: 1. straight line method 2. declining balance method 3.…

Q: Indicate the formula, given and the complete solution. A VOM has a selling price of Php 500. It is…

A: Declining balance method of depreciation is also known as reducing  balance method. Assets under…

Q: The exit price of an asset is RO 10,000 and the cost of disposal of the asset is RO 150. The asset…

A: Net realizable value is defined as estimated selling price less cost of disposal.

Q: Compute the depreciation charge and its book value after 10 years using declining balance method.

A: Depreciation rate= 100/Useful life  = 100/15  = 6.67%

Q: Determine the annual worth (AW) of a project, where it requires capital investment of BD 40,000, has…

A: Annual Worth = AW is an equal annual series of dollar amounts, over a stated period (N), equivalent…

Q: What is the capital recovery (CR) cost of the project? Assume Cash Flow First cost, S Annual cost, S…

A: In this we need to calculate the capital recovery cost of project.

Q: machine has a first cost of P800,000 and a salvage value of P50,000 at the end of its life after 10…

A: The return on investment is the profit earned annually above the annual cost of operating on initial…

Q: Solve the depreciation using the sinking depreciation method with the rate of interest of 10%

A: Sinking fund method of depreciation: Under the sinking fund method of depreciation, the amount of…

Q: The expected average rate of return for a proposed investment of $652,000 in a fixed asset, with a…

A: Proposed investment = $652,000 in a fixed asset, Useful life = 4 years, straight-line depreciation,…

Q: Jitihadi Itd intends to invest in a project whose cost is sh 1,200,000. The project is expected to…

A: Calculation of annual cash profits of the project: Cash profit is determined by deducting…

Q: A machinery worth BD20,000 has a lifetime of10 years and a salvage value of Rs. 1500. Calculate the…

A: Using the sinking fund method: Accumulated Depreciation=BD 12,584.21272 Book value at the end of…

Q: See image for MACRS table 1) What is the Ending Book Value at the end of year 3 using MACRS: $    2)…

A: Calculate the Book value at the end of year 3 and after-tax salvage value as follows:

Q: Calculate the expected accounting rate of return (referred to as "unadjusted rate of return " in…

A: The objective of this question is to calculate the expected accounting rate of return (ARR) for a…

Q: Compute the depreciation for the forecast 3 years for an asset pf 10700 costs the asset life 10…

A: The depreciation expense is the reduction in the value of a fixed asset with the passage of time.

Q: Q1. A commercial company plans to buy the device for $ 20,000 and is expected to sell it for $ 8,000…

A:

Q: QNO1: Calculate the annual rate of depreciation by using straight line method for an asset having…

A: Straight line method of depreciation is that method which charges a fixed amount of the value as…

Q: You are to create a year-by-year depreciation schedule for an asset that has a cost basis (B) of…

A: The salvage Value is $80,000 The price of the Equipment is $950,000 Project life is 10 years To…

Q: An asset costs $150,000 and has a salvage value of $15,000 after 10 years. What is the depreciation…

A: Business organizations are required to charge the depreciation expense in their books of accounts so…

Q: A backhoe have a purchase price of $187,500 with a salvage value of $28,060, and an anticipated…

A: Calculate annual depreciation cost (Using straight-line method): Annual Depreciation=Purchase…

Q: A lathe machine costs ₱650,000 and the salvage value of ₱65,000 after 20 years. Find the…

A: Using declining balance method, the asset is depreciated based on its book value. The depreciation…

Q: From the given values below, which machine should be selected using (a) Present worth Method and (b)…

A: Present Worth: It is the present value of the annual cash flows and the cost of the project…

Q: Initial Cost of $55,000, annual O&M costs of $800 increasing by $100 annually, salvage value of…

A: In this question , we will be calculating the depreciation for each year and book value using the…

Q: ment costs ₱3046114 with the estimated salvage value of ₱696261 at the end of 6 years. What is the…

A: Depreciation can be found by the sinking fund method also considering as the future value required…

Q: The following table summarizes the financial data for a proposed new asset. The issue is how long…

A:

Q: A machinery worth BD20,000 has a lifetime of 10 year and a salvage value of Rs. 1500. Calculate the…

A:

Q: 1. The machine costs P210 000 and expected to have a salvage value of P15 000 after 12 years.…

A: Given information, Cost of the machine =P210,000 Useful life =12 years Salvage value =P15,000…

Q: Using declining-balance depreciation with d = 27 percent, what is the book value after 5 years for…

A: A approach known as the diminishing balance method Depreciation is a process that may also be…

Q: DT Lid, provides you the following information 1.Purchase price of machine Rs. 190000 2.Installation…

A: Discounted pay back period is used in capital budgeting decision in order to identify the time…

Q: An asset which has a first cost of RM 40,000 is expected to have an annual operating cost of RM…

A: Data given: First cost =RM 40,000 Annual operating cost = RM 15,000 Rate=20%

Q: A certain asset valued at P 12,000.00 with a 4-year life, is estimated to have a scrap value of P…

A: solution given cost of asset (P)                =12,000 salvage value (L)               =600  n…

Q: Calculate the annual depreciation and book value of the construction equipment using declining b…

A: INTRODUCTION Depreciation: Depreciation is the term used in accounting to describe how an asset's…

Q: IL PROBLEM SOLVING 1. An equipment costing P250. 000 has an estimated life of 15 years with a bok…

A: Declining balance method of depreciation It is one of the depreciation method to compute annual…

Q: An equipment costing Php250,000 has an estimated life of 15 years with a book value of Php30,000 at…

A: Declining Balance Method: It is the depreciation calculating method where assets get depreciated…

Q: A MACHINE COSTS P 7,000,000.00 LAST 4 YEARS AND HAS A SALVAGE VALUE OF P 350,000. USE DELINING…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/4 years) x 2 = 50%…

Q: Pads Corp. is contemplating the purchase of a large stamping machine which will cost Php 500.000.…

A: The question is based on the concept of Depreciation Accounting.

Q: An equipment cost P60,000 today and its salvage value is P20,000 after 6 years. Calculate its…

A:

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.