installation costs him P31,000.00 If the life of the equipment with an estimated salvage value of P120,000. What is the bod 8 years using SLM. O P323,000 O P244,000
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- A machine has an initial cost of P 50,000.00 and a salvage value of P 10,000.00 after 10 years. What is the book value after 5 years using straight line method? O a. P25,000.00 O b. P30,000.00 О с. P15000.00 O d. P20,000.00Quèstion 25 An equipment costing P 360 000 has an estimated scrap value of P 25,000 at the end of its economic life of 11 years. Using Double-Declining Balance Method, what is the book value after 7 years? Exprees your answer in whole number. « > A Moving to another question will save this response. acer Prtsc Pause Del Home F8 F9 F10 F11 F12 F4 F5 F6 F7 Scr Lk SysRq Break F3 Coca-Cla % & -Backspac € 6 7 8 9 5 W R Y HPLEASE WRITE YOUR SOLUTION ON A PAPER, THANK YOU A Contractor imported a bulldozer for his job, paying P 350,000 to the Manufacturer. Freight andInsurance charges amounted to P 18,000; customs’ broker’s fees and arrastre services, P 8,500;taxes, permits and other expenses, P 35,000. If the contractor estimates the life of the bulldozer tobe 10 years with a salvage value of P 20,000, determine the book value at the end of 8 years, a. using the Double Declining Balance Method. b. using the Declining Balance Method. c. using the Sinking Fund Method, i = 10% d. using the Sum of the Years Method
- An equipment costs 115,000 QAR and ha an estimated salvage value of 10,000 QAR at the end of 5 years of useful life. Calctlate: The book value at the end of year 5 by the MACRS method. O 6624 19008 O 103664 O 7538Show your complete solution. 19. A machine cost 7,350 has a life of 8 years and has a salvage value of 350 at the end of a years. Determine its book value at the end of 4 years using Constant- Percentage of Declining Value.The cost of equipment is P 500,000.00 and the cost of installation is P 30,000.00. If the salvage value is 10% of the cost of equipment at the end of 5 years, determine the book value at the end of the fourth year. Use straight line method. O a. P146,000.00 O b. P142,000.00 O c. P146,010.00 O d. P156,000.00
- uppose that you purchased a HVAC system five years ago for $75, 000. The O&Mcosts are $15, 000 this year and are expected to increase by $1, 000 each year for the next five yearsthen remain the same for the following years.The current salvage value of the system is $15, 000; salvage value after one year is estimated tobe $12, 000; after two years, $11, 000; after three years, $10, 000; after four years, $9, 000; and so on.A new industrial HVAC system is available for purchase at a price of $95, 000, including instal-lation. The market value of the new system will decrease at a rate of 15% each year. The O&Mcosts are expected to be $1, 000 in the first year, and will increase at a rate of 20% each year. Themaximum service life of the new system is 10 years. Assume that your company uses an interestrate of 10% for all project evaluations.(a) Find the remaining economic life of the currently owned asset.(b) What is the economic service life of the new system?(c) Use the…An asset for drilling was purchased and place in service by a petroleum production company. Its initial investment is P60,000 and it has an estimated salvage value of P12,000 at the end of an estimated useful life of 14 years. Compute the book value at the end of the 5th year of life using SLM. a. P48,257.00 b. P42,857.00 c. None of the above d. P45,572.00Question 1 5 pts Given the following data for construction equipment: Initial cost = P 1 200 000 Economic life = 12 years Salvage value = P 320 000 Determine the book value after 7 years using sinking fund method using 6% interest. O 762 146 O 665 232 O 712 234 O 792 765
- Allen Construction purchased a crane 6 years ago for $130,000. They need a crane of this capacity for the next 5 years. Normal operation costs $35,000 per year. The current crane will have no salvage value at the end of 5 more years. Allen can trade in the current crane for its market value of $40,000 toward the purchase of a new one, which costs $150,000. The new crane will cost only $8,000 per year under normal operating conditions and will have a salvage value of $55,000 after 5 years. If MARR is 20%, determine which option is preferred. a) Use cash flow approach (insider's viewpoint approach) b) Use the opportunity cost approach (outsider's viewpoint approach)3. The annual worth method An office supply company has purchased a light duty delivery truck for $15,000. It is anticipated that the purchase of the truck will increase the company’s revenue by $10,000 annually, whereas the associated operating expenses are expected to be $3,000 per year. The truck’s market value is expected to decrease by $2,500 each year it is in service. If the company plans to keep the truck for only 2 years, what is the annual worth of this investment? The MARR = 18% per yearA lift truck priced at $38,000 is acquired bytrading in a similar lift truck and paying cash for theM09_PARK9091_06_GE_C09.indd 506 10/22/15 5:16 PMProblems 507remaining balance. Assuming that the trade-in allowance is $9,000 and the book value of the asset tradedin is $7,808, what is the cost basis of the new assetfor the computation of depreciation for tax purposes?