oton, Inc. acquired a new machine:
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- Kemp Inc. acquired a new processing machine: P1,800,000 Invoice cost Transportation cost 50,000 Installation cost 120,000 The purchase agreement stipulated that if payment is made within 10 days, the entity will receive a 5% discount. However, the entity paid after the discount time had expired. The new entity's main engineer spent two-thirds of his time on the new machine's trial run. The remuneration is P90,000 per month. The company requested for an allowance from the supplier since the machine's performance was below par. A cash allowance of P100,000 was issued by the supplier. The cost of uninstalling the old machine before installing the new unit was P10,000. a. P1,800,000 b. P1,840,000 c. P1,870,000 d. P1,780,000Falther Inc. acquired a new processing machine: Invoice cost P1,800,000 Transportation cost 50,000 Installation cost 120,000 The purchase agreement stipulated that if payment is made within 10 days, the entity will receive a 5% discount. However, the entity paid after the discount time had expired. The new entity's main engineer spent two-thirds of his time on the new machine's trial run. The remuneration is P90,000 per month. The company requested for an allowance from the supplier since the machine's performance was below par. A cash allowance of P100,000 was issued by the supplier. The cost of uninstalling the old machine before installing the new unit was P10,000. 1. What amount of should be recorded as cost of the new machine?Rover, Inc. acquired a new machine: Invoice cost, 5%/10, n/30 Transportation cost Installation cost The new entity's main engineer spent two-thirds of his time on the new machine's trial run. The salary of the main engineer is P90,000 per month. P 1,940,000 P1,800,000 The cost of insurance of the the new machine for the first year was P10,000. P 1,980,000 50,000 What amount should be recorded as the cost of new machine? P 2,070,000 120,000 P 1,950,000
- ABC Corp acquired an equipment with an invoice price of P2,500,000 with terms of 3/30, n/65. Installation cost is P50,000. Decommissioning cost is P200,000. Expected useful life is 10 years and effective rate was 12% How much is the initial cost of the equipment? 2,550,000 2,539,395 2,614,395 2,750,000A 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 P625,000An engineer bought equipment for P500,000. Other expenses Jas including installation amounted to P30,000. At the end of its estimated useful life of 10 years, the salvage value will be 10% of the first cost, using straight line method of depreciation, what is allid eo the book value after 5 years? ne abnul gn A plant erected to manufacture socks has a first cost of 10,000,000 with an estimated salvage value of P100,000 at the end of 25 years. Find its appraised value to the nearest P100 by the sinking fund method, assuming at an interest rate of 6%a at the end of :a. 10 years, b. 20 years 2.
- A new piece of equipment costs $30,000. The company can get $1,000 for trading in their old machine. Follow is financial data relevant to the new machine: $10,000 revenue; $4,000 cash expenses; useful life 6 years; depreciation expense $1,500 per year. The required investment is: O $29,000 $30,000 $28,500 $27,500Abby Corporation acquired a new processing machine. Details of the acquisition are as follows: Invoice cost, terms, 5% discount if payment is made in 30 days. The company did pay within the discount period, P300,000, Cost of transporting the machine to the corporation's factory, P5,000. Cost of installation (which includes additional P2,000 incurred due to negligence of the workers), P11,000. The corporation's chief engineer spent one-fourth of his time during trial runs of the new machine, his monthly salary is P22,000. The company paid P1,000 for removing the old machine. (The old machine was sold for less than its book value.) At what amount should Abby Corporation capitalize the new processing machine?Acquisition of a new machine cost #680,000. Delivery, installation, and other expenses cost 15% of the purchasing cost. The machine has a useful life of 15 years with a scrap value of P85,000. Using the SYD method, what is the book value of the machine after 13 years? A P127,056.50 B P102,425.00 C P144,026.90 D P115,500.10
- Nestle Ltd. Production department realized that one of their machines needs to be replaced and the following assets are proposed. Nestle has assigned $1.5 million dollars to purchase the asset(s). Nestle’s WACC is 8%. Years Asset L Asset M Asset N Initial Costs $700,000 $800,000 $500,000 Expected Cash Inflows: 2018 300,000 200,000 2019 250,000 200,000 200,000 2020 200,000 200,000 200,000 2021 150,000 200,000 150,000 2022 200,000 150,000 Requirement: Recommend which Asset(s) the company should purchase based on the Payback and Net Present Value Capital Budgeting Techniques. If the funds allow for the purchase of more than one asset, rank them from most favorable to least and select the ones to be purchased.Reverend Company acquired a new processing machine at the beginning of the current year: Invoice cost – terms 5/10, n/30 1,600,000 Cost of transportation to the entity’s factory 50,000 Cost of installation (labor and materials) 50,000 Payment for strengthening the floor to support the weight of the new machine 150,000 The chief engineer spent two-thirds of his time during a trial run of the new machine. The monthly salary is P60,000. During the year, the entity was granted a cash allowance of P100,000 by the supplier because the machine proved to be of less than standard performance capability. The operator of the old machine who was laid off due to the acquisition of the new machine was paid a gratuity of P30,000. What amount should be capitalized cost of the new machine?Dettol Limited bought a machinery of Sh. 25 million The Machinery is expected to package 50 million 100 ml hand sanitizers during its life time and has a salvage value of Sh. 2.5 million. For the ten years, the schedule of actual production is as follows; Year 1 2 3 4 5 6 7 8 9 10 Total Units produced “million” 7.9 7.2 6.6 5.5 4.8 4.0 3.7 3.6 3.5 3.2 50 Required (i) Calculate the depreciation charge per 100 ml hand sanitizer. (ii) Prepare a depreciation schedule for this machinery using the units of production approach.