ind out the value of
Q: Calculate the balancing adjustment.
A: The initial allowance is an allowance given in the tax code for qualifying assets in the first year…
Q: An instrument requires recalibration once every five years at a his expense, assuming i = 5%.
A: Capitalized cost is the present value of the future cost that are going to occur based on the time…
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 costs ₱355,000 including shipping, installation and taxes. The supplier assures…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: The ____________ is multiplied by a certain number of years to arrive at the value of goodwill.
A: Goodwill means the reputation which a firm enjoy because any factor like good after sale service ,…
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: He purchased an item at $60k. That has an economic life of 8yrs. What then is the salvage value of…
A: Sum of years = 8 + 7 + 6 + 5 + 4 + 3 + 2 + 1 = 36 Accumulated depreciation till 5 years = Purchase…
Q: How do you calculate the goodwill value of $94,700?
A: Lets understand the basics.When one entity acquires another entity then concept of goodwill or gain…
Q: Calculate goodwill at three year purchase of the average profits of last five years’ profits. The…
A: To calculate goodwill at three year purchase of the average profits of last five years’ profits:-…
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: The Goodwill is to be valued at two years' purchase of last four years' average profit. The profits…
A: Average profit of 4 years = (40,000 + 32,000 + 15,000 + 13,000)/4 = 25,000
Q: d. All of the above 6. If current assets are P270,000 and total assets are P810,000, what percentage…
A: Percentage of total assets are current assets = Current assets / Total assets
Q: A piece of equipment costs ₱378,000 including shipping, installation and taxes. The supplier assures…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: 3. As at 31 December 2020, the property had a fair value of €230,000. This property was previously…
A: (a) Journal entries for 3, 4 and 5 : 3. As on 31.12.2020, The property had fair value = E230000 Cost…
Q: Southern inc. purchases an asset for 98,000. Thus asset qualifies as a 3 year recovery asset under…
A: Cost of the asset = $98,000The book value of the asset at the end of 2 years is
Q: worth 9% compounded annually, what was she equivalent uniform annual cost for the ten- year period?
A: Equivalent Uniform Annual Cost: It is the cost of operating, maintaining, and owning the asset…
Q: piece of equipment costs ₱399,000 including shipping, installation and taxes. The supplier assures a…
A: Solution concept sum of years digit method Under sum of years depreciation is charged on the basis…
Q: The actual carrying of an asset is R650 000 on 1 Jan 2020. Depreciation for the 2020 Financial year…
A: Revaluation : The accounting method of increasing or decreasing the carrying value of a company's…
Q: The capital cost of a property is $5900000. A CCA rate of 20% is applied. The tax rate is 30%. Take…
A: A) Closing book value of Property Year Opening value ($) CCA @ 20% Closing Value ($) 1 5900000…
Q: after tax WACC: 10.10% investment related cash flows: invoice price of machinery: $500,000…
A: Here, WACC is 10.10% Selling Price per unit is $250 with 2.5% inflation Cost per unit is $185 with…
Q: For years one through five, a proposed expenditure of £350,000 on a non- current asset with an…
A: Answer:- Payback period meaning:- The payback period can be defined as the amount of time which is…
Q: he following present value factors are provided for use in this problen f $1 at 8% Present Value of…
A: (NPV) is a financial metric used to evaluate an investment project's profitability in capital…
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: The purchase of an item of construction equipment is fifty million Kenya shillings(kshs) . The…
A: Depreciation is the amount of reduction in the value of asset due to its normal usage in the…
Q: Capitalized cost is an application of perpetuity. It is the sum of the first cost and the present…
A: A perpetuity is a series of cash payments that have no maturity value. The capitalized cost is used…
Q: (b) Calculate the capital porpetuily where the ap
A: Capital value is the equivalent value based on time and interest rate of the future cash flow that…
Q: 24) Calculate goodwill at three year purchase of the average profits of last five years profits. The…
A: Step 1: Average 5 Years profit Average 5 years profit (23000+27000+32000+20000+18000)/5…
Q: 1)The profits of the last five years were: OMR 32,500, OMR 25,500, OMR 32,000,
A: Formula: Average profits = Sum of years Profits / Number of years
Q: First Cost 300000 Present worth of the annual maintenance cost *Letters only Perpetuity of the…
A: Given:- Initial cost=P300000 Replacement required at every 15 years Annual maintenance cost= P5000…
Q: An asset costs R6 300,000 with a R900,000 salvage value at the end of its ten-year life. If annual…
A: Payback period is one of the simple method of capital budegting techniques and it is the time…
Q: The market value of a home is $90,000. Find the assessed value if the assessment rate is 71%.…
A: The numerical has covered the concept of assessed value. An assessed value is that the dollar value…
Q: (f) The IASB's Conceptual Framework for Financial Reporting 2010 (IFRS Framework) requires financial…
A: IFRS or International Financial Reporting Standards are the guidelines of accounting given by the…
Q: The actual carrying of an asset is R650 000 on 1 January 2020. Depreciation for the 2020 Financial…
A: Depreciation is the lessening in the worth of asset due to asset's overuse, erosion or obsolescence.…
Q: DT Ltd. provides you the following information: 1. Purchase price of machine Rs. 1,90,000 2.…
A: Discounted payback period is the period by which discounted cash flows are sufficient to cover all…
Q: A business buys a machine for £60,000 and depreciates it at 10% per annum by the reducing…
A: We have the following information: Cost of Machine: $60,000 Rate of depreciation: 10% per annum…
Q: On 31 December 2013, the fair value of the asset less costs to sell was OMR 50,000 and the expected…
A: Depreciation is a method to recover the cost of the asset over its useful life.
Q: using a capitalization of 10% a commercial property is valued at 420000. the expenses are 30% of the…
A: Capitalization rate = 10% Property Value = 420,000 Expenses = 30% of gross income
Q: Goodwill of a firm is to be valued at two years' purchase of three years' average profits. The…
A: Lets understand the basics. Goodwill is a intangible asset. It is a established reputation of the…
Q: If the replacement cost of the machine on 31st December 2019 was OMR 70,000 and on 31st December…
A: Depreciation on historical cost of machine =Replacement cost of machine on 31st December , 2019×…
Step by step
Solved in 2 steps
- if an asset costs $s0600 and is expected to have a $4900 salvage value at the end of its 9-year life, and generates annual net cash inflows of $9200 each year, the cash payback period is O6.0 years. O5.5 years O5.0 years. O9.0 yearsA machine is purchased for P100,000. If the annual maintenance cost is P1,800, determine the capitalized cost of perpetual service with an interest rate of 8%. P325,000 P425,000 P525,000 P625,000The first cost of a certain piece of equipment is 40,000OMR. It will have an annual operating cost of 10,000 OMR and a 6,000 OMR salvage value (scrap value) after its 5-year life, at an interest rate of 12% per year. Find the capitalized cost of the equipment. a) 171,811.23 OMR b) 167,932.75 OMR c) 181,212.005 OMR d) 125,213.62 OMR C a b MacBook Pro
- If the cost of the truck is OMR 30,000 and the annual depreciation expense OMR 2,000. How much will be the book value of the truck at the year end? a. OMR 32,000 b. OMR 30,000 c. OMR 2,000 d. OMR 28,000A piece of equipment costs ₱351,000 including shipping, installation and taxes. The supplier assures a salvage value of ₱18,000 after 20 years. What is the book value at the end of the 5th year using the Sum-of-the-Years Digits method?The asset - vehicle worth £21,200 will be depreciated by 10% at the end of the year. Which nominal accounts should be debited and credited, respectively? a) Debit Depreciation A/c & Credit Non-Current Asset A/c b) Debit Inventory A/c & Credit Depreciation A/c c) Debit Balance Sheet A/c & Credit Profit or Loss A/c
- A piece of equipment costs ₱354,000 including shipping, installation and taxes. The supplier assures a salvage value of ₱24,000 after 20 years. Using the Sum-of-the-Years Digits method, what is the depreciation charge during the 5th year?An equipment is bought for OMR 20,000 and its depreciation is charged at 10% per annum (p.a.) at written down value method. How much is the amount of depreciation at the end of the first year? a. OMR 2,000 b. OMR 20,000 c. OMR 10,000 d. OMR 1,000A taxpayer wants to place in service a $10,000 asset that is assigned to the five-year class. Compute the MACRS percentages and the depreciation amounts for the asset. Given: Five-year asset, half-year convention, \alpha =40% and S=0 Find: MACRS depreciation percentages Dn for $10,000 asset.
- The company Alumnos Emprendedores S.A. has an investment for a total amountof $175,800.00, and annual net cash flows of $52,050.00, calculate the periodof recovery, detail your result in years, months and daysEstimate the value of the property using the income approach based on the following facts: Net operating income annually for next 3 years is $400000 At end of three years, property is sold with an existing cap rate of 10% and a commission of 4% on sale The discount cap rate is the same as the existing cap rate and the operating income is assumed to be received at year end