Answered: EOY Usage (in tons) UOP Depreciation…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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An oil refinery has decided to purchase some new drilling equipment for $440,000. The equipment will be kept for 7 years before being sold. The estimated SV for depreciation purposes is to be $18,000. Using the SL method, what is the BV at the end of the depreciable life? Choose the correct answer below. A. The BV at the end of the depreciable life is $36,000. B. The BV at the end of the depreciable life is $44,857. C. The BV at the end of the depreciable life is $18,000. D. The BV at the end of the depreciable life is $0.
Katie's restaurant purchased a new grill at a cost of $6,000. The expected life of the grill is 5000 hours of production, at which time it will have a salvage value of $600. Using the units-of-production method, prepare a depreciation schedule given the following production: year 1: 1000 hours; year 2: 1250 hours; year 3: 1000 hours: year 4: 1750 hours Complete the schedule. Amount of Year Depreciation 0 1 2 $1000 $1250 $1000 $1750 (Round to the nearest dollar as needed.) 3 Accumulated Depreciation xample Get more help. 1080 $1350 $1080 $1890 Book Value $6,000 $4920 $ 3570 $ 2490 $600 Clear all Skill builder Check answer
A $150,000 asset has been depreciated with the straight-line method over an 8-year life. The estimated salvage value was $30,000. At the end of the fifth year, the asset was sold for $90,000. From a tax perspective, what is happening at the time of disposal and what is the dollar amount?
2. Momhil Inc. bought a professional coffee machine costing 2100,000.00.0ver its useful life it is estimated that it can process 5,000kgs of coffee or 200,000 servings. Entity can salvage the machine 25,000 at the end of useful life. Calculate the depreciation for this year if the entity is using unit of production method and it has: a) process 200 kg of coffee, b) served 15,000 www customers. NOTE: shuld be Write formula before answer wwwwwwww
Your business buys a delivery van for $28,000. You figure the van will be useful for 5 years and have a value of $5,000 at the end of the 5-year period. What is the (a) basis, (b) useful life, (c) salvage value, (d) depreciable basis, (e) accumulated depreciation at the end of year 2 if you take $4,600 depreciation each year, and (f) the book value at the end of year 2?
Malu Luigi Company makes an internal policy that for every new machine purchased, the annual depreciation cost should not exceed 15% of the first cost and should cost nothing at the end of its life. Determine the service life of brand new P 500,000 machine using SOYD.
A factory has decided to purchase some new equipment for P600, 000. The equipment will be kept for 10 years before being sold. The estimated salvage value for depreciation purposes is to be P45,000. Using straight line method, what is the book value at the end of its depreciable life? pls show manual solution a. P 50,000 b. P 25,000 c. 35,000 d. P 45,000
Calculate the expected hourly pwning and operating cost for the fourth year of the operation of the twin engine scraper with the following information. Use the sum of the year's digits method of depreciation. Delivered price Tire cost $420,000 $48,000 5 years $57,000 %8 of amount to be depreciated %13 of book value (end of period) Estimated life Salvage value Investment cost for the fourth year Tax, insurance and storage for fourth year Operating conditions Rated power Fuel price Operator's wages Hours operated Equipment remains idle for 16 days during the year; 1 year=52 weeks=365 days Cost of special items Severe 580 hp $5.18/gallon $28.00/hour 5 days a week and 11 hours per day $24.02/hour
ZYK company makes its policy that for every new equipment purchased, the annual depreciation should not exceed 10% of the first cost at any time without salvage value. Determine the length of service if depreciation used is the SYD Method. Show COMPLETE solution. Do not use excel Select one: a. 15 years b. 19 years с 18 уears d 20 years
An asset has an initial cost of $25,000, useful life of 5 years, and no salvage value. Using Double-Declining Balance (DDB) with a switch to SL at the optimal time, complete the following depreciation table: Enter your answer exactly as follow: 123456 EOY Dn (DDB with Switch to SL) 1 Book Value 2 3 + 5

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EOY Usage (in tons) UOP Depreciation Allowed 25,000 2 22,500 5510.20 3 20,000 17,500 4285.71 5 15,000 6 12,500 3061.22 10,000