M 2: A certain organization deciaed to acquire a skte of the art production equipment that will cost 2, 000,000 pesos. The amocent of Shipping is 69 000 and the Installation charge to be paid is 75,000, Using the declining balance method and double declining baance method. Find a) the depreciation cost for ts 3rd year of use. b) the total depreciation tor 7 years ) the salyage valye if it is expected c to last for 15 years, O If the annual rate of depreciation for DBM is e r9

M 2: A certain organization deciaed to acquire a skte of the art production equipment that will cost 2, 000,000 pesos. The amocent of Shipping is 69 000 and the Installation charge to be paid is 75,000, Using the declining balance method and double declining baance method. Find a) the depreciation cost for ts 3rd year of use. b) the total depreciation tor 7 years ) the salyage valye if it is expected c to last for 15 years, O If the annual rate of depreciation for DBM is e r9

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section9.A: Depreciation

Problem 5P

See similar textbooks

Similar questions

Amachine whose cost is 80.000 nyals and s value as scrap is 5,000 ryals and its useful ife is 5 years The balance of the depreciation complex for the second year according to the method of depreciating the dedning balance wil be. Second one: O 19200 O 12800 O 28800 O 51200
PROBLEM 2: A certoun organization adecided to acquire a state of the art production equipment that will Cost 2, 000,000 pesos. Shipping is 69000 r to be paid iš 75,000, Using the declining balance method and double declining bakanCE method. Find a) the depreciation cost for ts 3rd year of use b) the total depreciation tor e years O the salyage valye if it is exxpected to last for 15 The amocent of and the Installation charger years, o If the annual rate of depreciation for DBM is 9.5%,
A machine costs PhP 7 654 + 32 x (01), lasts 8 years and has a salvage value at the end of PhP 345. Determine the follwoing: a. Depreciation charge during the 6th year using sum of years digit methodb. book value at the end of the 6th year using declining balance methodKindly provide a COMPLETE and CLEAR solutions.
4. An asset that is book-depreciated over a 5-year period by the straight-linemethod has BV3 = ₱ 62,000 with a depreciation charge of ₱ 26,000 peryear. Determine (a) the first cost of the asset and (b) the assumed salvagevalue
A machine costs P7,000, last 8 years and has a salvage value at the end of life of P350. Determine the depreciation charge during the 4th year and the book value at the end of 4 years by the a. straight line method. b. declining balance method C. SYD method, and d. sinking fund method with interest at 12%,
An assembly line conveyor system with a 5-year life is to be depreciated by the DDB method. The conveyor units had a first cost of $30,000 with a$9000 salvage value. The annual operating cost allocated to the conveyor is $7000 per year. The book value at the end of year 2 is closest to:a. $6,480b. $10,800c. $12,400d. $18,000
A motorized cultivator with a first cost of $28,000 and salvage value of 25% of the first cost is depreciated by the DDB method over a 5-year period. If the operating cost is $43,000 per year, the depreciation charge for year 2 is closest to:a. $18,000b. $11,200c. $6700d. $4030
Your company has purchased a large new trucktractor for over-the-road use (asset class 00.26). It has a cost basis of $173,000. With additional options costing $14,000, the cost basis for depreciation purposes is $187,000. Its MV at the end of four years is estimated as $42,000. Assume it will be depreciated under the GDS: a. What is the cumulative depreciation through the end of year two? b. What is the MACRS depreciation in the third year? c. What is the BV at the end of year one?
Your company has purchased a large new trucktractor for over-the-road use (asset class 00.26). It has a cost basis of $179,000. With additional options costing $14,000, the cost basis for depreciation purposes is $193,000. Its MV at the end of six years is estimated as $36,000. Assume it will be depreciated under the GDS: a. What is the cumulative depreciation through the end of year two? b. What is the MACRS depreciation in the second year? c. What is the BV at the end of year one? Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates (rk). a. The cumulative depreciation through the end of year two is $ (Round to the nearest dollar.) b. The MACRS depreciation in the second year is $ (Round to the nearest dollar.) c. The BV at the end of year one is $ (Round to the nearest dollar.)
5. The price of a system of jockey pumps is P5,500,000. PLM decided to purchase this system and spent P215,500 for shipping and installation. The equipment will last for 10 years with a salvage value of 3% of its total cost. Determine the following: a. Yearly charge of depreciation using SL method. b.Depreciation charge on the 6thyear, and book value at the end of the 8thyear using SYD method.
Machine A is bought for $200,000 and has a residual value of $80,000 after six years of use. The amortization is straight-line and the annual profit before depreciation generated by the machine is 530,000. What is the ARR? Select one O 24% O 7.1% O 43% O 16.7%
A solar panel unit has been purchased by a company for electricity back up. The solar unit costs P70,000 alone. Additional payment of P5,000 pesos has been made for shipment and P3,000 for installation. a. if the unit has an expected life of 12years, what is annual depreciation cost by the straight-line(SL)depreciation method. The salvage value was estimated at P5000at the end of unit’s life. b.Using sinking fund method, determine the annual depreciation cost. It is assumed that the annual charge for depreciation was deposited in a fund with a 6% compounded monthly.