5 During the construction of a highway bypass, earth- moving equipment costing $40,000 was purchased for use in transporting fill from the borrow pit, At the end of the 4-year project, the equipment will be sold for $20,000. The schedule for moving fill calls for a total of 100,000 cubic feet during the project. In the first year, 40% of the total fill is required; in the second year, 30%; in the third year, 25%; and in the final year, the remaining 5%. Determine the units-of-production depreciation schedule for the equipment.
Q: A new operations system requires an initial investment of $100,000 and will generate $70,000 in…
A:
Q: The Transportation Service Directorate of a Municipality wants to purchase a new software system to…
A: Capitalization cost means total cost incurred in the project or investment. Some part of the cost…
Q: Khamsah Mining Company has purchased a tract of mineral land for $900,000. It is estimated that this…
A: The depletion and depreciation is the reduction in the book value of the asset due to the use or…
Q: Gimli Miners recently purchased the rights to a diamond mine. It is estimated that there are one…
A: Depletion is the reduction in value of natural resources over the period of time. This is charged as…
Q: The Public Service Board (PSB) awarded two contracts worth a combined $3.07 million to increase the…
A: Calculation of savings if bids were lower than estimated is shown below: Hence, annual worth of…
Q: Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,300,000 in…
A: Total Cost of Copper Mines = Cash Paid for Mining site + Additional Development cost + Restoration…
Q: The Arkansas Division of ADM, a large agricultural products corporation, purchased a…
A: The value to determine the economic analysis of the current asset (defender) is the current market…
Q: Proposal 1 requires dredging the canal. The state is planning to purchase the dredging equipment and…
A: Annual Worth (AW) is easy to understand by anyone familiar with annual amounts because for example,…
Q: Burling Water Cooperative currently contracts the removal of small amounts of hydrogen sulfide from…
A: Replacement decisions are taken based on the present value of all the cash flows during the life of…
Q: A municipality is planning on constructing a water treatment plant at an initial cost of…
A: Capital cost is the cost which is required to purchase an equipment. It also includes the repair…
Q: ackpot Mining Company operates a copper mine in central Montana. The company paid $1,900,000 in 2021…
A: A journal entry is used to record a business transaction int he accounting records of a business.
Q: An Engineer makes the following cost estimates for each: A: Concrete Bleachers: First cost,…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: Determine the cost of the copper mine. 2. Prepare the journal entries to record the acquisition…
A: Computation of Cost of Copper Mine Particular Amount Cash Paid for Mining site $1,000,000…
Q: Required: 1. Compute depletion and depreciation on the mine and mining equipment for 2021 and 2022.…
A: Jackpot Mining Company operates a copper mine in central Montana. The company expects to extract…
Q: Assume that Wal-Mart Stores, Inc. has decided to surface and maintain for 10 years a vacant lot next…
A: Given:: Area= 12000 sq. yard Working Notes (WN): WN # 1 Bid A Installation cost…
Q: The Camino Real Landfill was required to install a plastic liner to prevent leachate from migrating…
A: Computation:
Q: he Arkansas Division of ADM, a large agricultural products corporation, purchased a state-of-the-art…
A: A replacement decision is a financial decision where management eliminates old product and…
Q: A bulk-water supplier has been awarded by a city to supply their potable water for the next 10…
A:
Q: A state government is considering construction of a flood control dike having a life span of 15…
A:
Q: A contractor has a 4-year concrete mixer whose first cost was $6,000, having 3 more years to live…
A: Annual Equivalent cost of the machine can be computed by dividing the present value of the machine…
Q: A city government is considering two types oftown-dump sanitary systems. Design A requires aninitial…
A: The relation between the relative cost and benefits of the various investment proposals are analyzed…
Q: To decrease the costs of operating a lock in a large river, a new system ofoperation is proposed.…
A: There are a number of different pieces that are in play that must be factored in and be properly in…
Q: The York City Hospital has just acquired new equipment. The equipment cost $4,250,000, and the new…
A: Depreciation in accounting means decrease in the value of assets over useful life. it is a process…
Q: Underwood’s Miners recently purchased the rights to a diamond mine. It is estimated that there are…
A: Depletion expense = Cost * Extracted for the year / Total Extraction from the mine
Q: 1. This project must fund the construction of an on/off-interchange from an adjacent highway, a…
A: Step1: Calculating the amount will need to be funded today to meet the complete funding requirements…
Q: Company A decided to build a road. The duration of the project was 4 years and the fee amounts to €…
A:
Q: A specialty concrete mixer used in construction was purchased for $300,000 7 years ago. Its annual…
A: Computation of EUAC of existing and new mixer using insider's view point approach:Hence, the EUAC of…
Q: Assume that Wal-Mart Stores, Inc. has decided to surface and maintain for 10 years a vacant lot next…
A: Calculation of present value outflows: Answer: Present value outflows for Bid A is $129,881.21…
Q: The Highway Department expects the cost of maintenance for a piece of heavy construction equipment…
A: The value of money varies with time, therefore the time value of money considers the worth of the…
Q: A one-mile section of a roadway in Florida has been washed out by heavy rainfall. The county is…
A: The discount rate, or MARR, imposes a condition of minimum profitability that a project or project…
Q: During the construction of a highway bypass, earth moving equipment costing P400,000 was purchased…
A: The question is based on the concept of Depreciation Accounting.
Q: The owners of a new planned unit development have installed a package sewage frealment plant that…
A: The Net Present Worth: The net present worth of a project is the net of the present value of cash…
Q: hich is the most economical plan if the interest rate is 12%
A: Proposal A Initial Cost 2,750,000 Life 40 years Annual Operating cost 5,000 Rate of…
Q: The Drilling Corp. owns drilling rights on a tract of land on which crude oil has been discovered.…
A: To evaluate the project, Net Present Value method will be used. Net present value method is defined…
Q: . At the end of the 4-year project, the equipment will be sold for P200,000. The schedule for moving…
A: Original Cost of Asset=$40,000Salvage value=$20,000Life of Asset=4 yearsTotal Production=100,000…
Q: A local county government is considering purchasing some dump trucks for thetrash pickups. Each…
A: Time period is denoted by n, and interest rate is denoted by i, annual fee (AF) can be calculated as…
Q: The city of Zamboanga contemplates to increase the capacity of their existing water transmission…
A: PW or NPV is the method to find the net benefit which can be generated from the future cashflows. It…
Q: A quarry outside of Austin, Texas, wishes to evaluate two similar pieces of equipment by which the…
A: a. year X Y 0 -40,000 -75000 1 -25000 -15000 2 -25000 -15000 3 -25000 -15000 4 -15000…
Q: Gimli Miners recently purchased the rights to a diamond mine. It is estimated that there are one…
A: Depletion arte per tons = (Cost of rights - Residual value) / Estimated tons of minerals =…
Q: Two alternatives are being considered for recovering aluminum from garbage. Alternative 1 has a…
A: Introduction: Present worth analysis Present worth analysis can be defined as a analysis which…
Q: A new highway is to be constructed. Design A calls for a concrete pavement costing 3600 per foot…
A:
Q: Every 10 years, the dome of the state capitol building has to be cleaned, sandblasted, and…
A: Capital cost is the the amount which is needed to make a project operational. In order to find this…
Q: BW Company has determined that it requires a new treatment facility that would clean polluted water…
A: The decision regarding the acquiring the asset or the construct the asset depends upon the various…
Q: Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,900,000 in…
A: Journal entry is defined as recording of the business transactions into the books of accounts of the…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- During the construction of a highway bypass, earth moving equipment costing P400,000 was purchased for use in transporting fill from the borrow pit. At the end of the 4-year project, the equipment will be sold for P200,000. The schedule for moving fill calls for a total of 100,000 cubic feet during the project. In the first year, 40% of the total fill is required; in the second year, 30%; in the third year 25%; and in the final year, the remaining 5%. Determine a) the units-of-production depreciation schedule b) the declining balance depreciation schedule.During the construction of a highway bypass, earth moving equipment costing P400,000 was purchased for use in transporting fill from the borrow pit. At the end of the 4-year project, the equipment will be sold for P200,000. The schedule for moving fill calls for a total of 100,000 cubic feet during the project. In the first year, 40% of the total fill is required; in the second year, 30%; in the third year 25%; and in the final year, the remaining 5%. Determine the service-output depreciation schedule.During the construction of a highway bypass, earth moving equipment costing P400,000 was purchased for use in transporting fill from the borrow pit. At the end of the 4-year project, the equipment will be sold for P200,000. The schedule for moving fill calls for a total of 100,000 cubic feet during the project. In the first year, 40% of the total fill is required; in the second year, 30%; in the third year 25%; and in the final year, the remaining 5%. Determine the declining balance depreciation schedule.
- The Camino Real Landfill was required to install a plastic liner to prevent leachate from migrating into the groundwater. The fill area was 47,000 m² and the installed liner cost was $8 per m2. In order to recover the investment, the owner charges to unload at the rates of $17 per pickup, $25 per dump truck, and $70 per compactor truck load. The fill area is adequate for 4 years. If the annual traffic is estimated to be 2500 pickup loads, 650 dump-truck loads, and 1200 compactor-truck loads, what rate of return will the landfill owner make on the investment? The rate of return that will be made by the landfill owner is % per year.The Camino Real Landfill was required to install a plastic liner to prevent leachate from migrating into the groundwater. The fill area was 50,000 m2 and the installed liner cost was $8 per m2. In order to recover the investment, the owner charges to unload at the rates of $10 per pick-up, $25 per dumptruck, and $70 per compactor-truck load. The fill area is adequate for 4 years. If the annual traffic is estimated to be 2500 pick-up loads, 650 dumptruck loads, and 1200 compactor-truck loads, what rate of return will the landfill owner make on the investment?Green County is planning to construct a bridge across the south branch of Carey Creek to facilitate traffic flow though Clouser Canyon. The first cost for the bridge will be $9,500,000. Annual maintenance and repairs the first year of operation, estimated to be $10,000, are expected to increase by $1000 each year thereafter. In addition to regular maintenance, every 5 years the roadway will be resurfaced at a cost of $750,000, and the structure must be painted every 3 years at a cost of $100,000. If Green County uses 5% as its cost of money and the bridge is expected to last for 20 years, what is the EUAC?
- A municipality is planning on constructing a water treatment plant at an initial cost of $10,000,000. Every 5 years, major repairs and cleanup are required at a cost of $2,000,000. Due to the necessity to remove sludge and make minor repairs, annual costs of operating the treatment plant are estimated to be $700,000, $775,000, $850,000, $925,000, and $1,000,000 each year leading up to the 5-year major repair and cleanup. Based on a 4%/year TVOM, what is the capitalized cost for the water treatment plant?A granary has two options for a conveyor used in the manufacture of grain for transporting, filling, or emptying. One conveyor can be purchased and installed for $70,000 with $3,000 salvage value after 16 years. The other can be purchased and installed for $110,000 with $4,000 salvage value after 16 years. Operation and maintenance for each is expected to be $18,000 and $14,000 per year, respectively. The granary uses MACRS-GDS depreciation, has a income-tax rate of 25%, and a MARR of 9% after taxes. Comment on the differences in AWAT for each of these three analyses - Use MACRS-GDS(10) alone. Use MACRS-GDS(10) with 50% bonus depreciation. Use MACRS-GDS(10) with 100% bonus depreciation.A new highway is to be constructed. Design A calls for a concrete pavement costing 3600 per foot with a 20-year life, two paved ditches costing 120 per foot each and three box culverts every mile, each costing 360,000 and having a 20-year life. Annual maintenance will cost 72,000 per mile, the culverts must be cleaned every five years at a cost of 18,000 each per mile. Design B calls for a bituminous pavement costing 1800 per foot with a 10-year life, two sodded ditches costing 60 per foot each, and three pipe culverts every mile, each costing 90,000 and having a 10-year life. The replacement culverts will cost 96,000 each. Annual maintenance will cost 108,000 per mile, the culverts must be cleaned yearly at a cost of 9000 each per mile, and the annual ditch maintenance will cost 60 per foot per ditch. Compare the two designs on the basis of equivalent worth per mile for a 20-year period. Find the most economical design on the basis of Annual Worth and Present Worth if the Minimum…
- A granary has two options for a conveyor used in the manufacture of grainfor transporting, filling, or emptying. One conveyor can be purchased and installed for $70,000 with $3,000 salvage value after 16 years. The other can be purchased and installed for $110,000 with $4,000 salvage value after 16 years. Operation and maintenance for each is expected to be $18,000 and $14,000 per year, respectively. The granary uses MACRS-GDS depreciation, has a income-tax rate of 25%, and a MARR of 9% after taxes. Use MACRS-GDS(10) alone.A granary has two options for a conveyor used in the manufacture of grain for transporting, filling, or emptying. One conveyor can be purchased and installed for $70,000 with $3,000 salvage value after 16 years. The other can be purchased and installed for $110,000 with $4,000 salvage value after 16 years. Operation and maintenance for each is expected to be $18,000 and $14,000 per year, respectively. The granary uses MACRS-GDS depreciation, has a income-tax rate of 25%, and a MARR of 9% after taxes. Solve, a. Determine which alternative is less costly, based upon comparison of after-tax annual worth. b. What must the cost of the second (more expensive) conveyor be for there to be no economic advantage between the two?A minor league baseball stadium is built at a cost of $12,000,000. The annual maintenance costs are expected to cycle every 6 years with a cost of $18,000 the first year and $2000 each year thereafter until the cost is $28,000 at the end of Year 6. The maintenance costs cycle will repeat starting with $18,000 in Year 7. Every 6 years an expenditure of $1,500,000 must be made to renovate and update the stadium. Determine the capitalized cost at 4%.