3. A machine is purchased for $70,000. Life is 10 years with a S10,000 salvage. MARR is 10 and the tax Tate is 50 Cash operating costs are $4500 per year. Five year MACRS (20, 32, 19.2, 11.52, 11.52, 5.76) depreciation will be used. Calculate the annual equivalent revenue requirements for this machine.
Q: A company paid $200,000 for a machine to make a new product. The machine has a 5 year life and a…
A:
Q: SHOW ALL SOLUTIONS. 1. An investment of P60,000.00 can be made in depreciable assets that will…
A: Investment amount = P60000 Revenue = P29000 each year for 5 years Maintenance cost = P12000 per year…
Q: F. The College of Engineering is planning to put up its own laboratory building. Two proposals being…
A: In economics, present value refers to the current value of a future stream of cash flow. Future…
Q: You are given the following information for Calvani Pizza Co.: sales = $41200; costs =____ $21601;…
A: Depreciation expense is the amount that a company's assets are depreciated for a single period (…
Q: 4. A firm purchased $120,000 worth of light general- purpose trucks. The operations of the trucks…
A:
Q: An engineer bought equipment for P500,000. HE spent an additional amount of P30,000 for installation…
A: According to question, it is given that Price of equipment = 500,000 Additional amount = 30,000…
Q: elevator system for a 15-yr old high-rise office building cost P 18M when first installed. The…
A: The sinking fund technique is a method for depreciating an asset while making enough money to…
Q: A lift truck priced at $38,000 is acquired bytrading in a similar lift truck and paying cash for…
A: Cost bias for the computation of depreciation can be calculated as follows:
Q: 6) A company is considering the purchase of a new automated assembly machine to increase its…
A: The initial cost of the machine = $480,000. Expected to increase the company's annual revenue by =…
Q: Henredon purchases a high-precision programmable router for shaping furniture components for…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: A trucking company computes depreciation on its vehicles by a mileage basis.Suppose a delivery truck…
A: The regular distribution of the devalued value of an object throughout its usable period is…
Q: 5. A truck for hauling coal has an estimated net cost of $55,000 and is expected to give service for…
A: Investment = $55,000, Salvage Value = $5,000, total service units = 250,000 miles, and usage for…
Q: 7-10. A crane rental company has acquired a new heavy-duty crane for $300,000. The company…
A: Introduction Depreciation Depreciation in the most simple form is the reduction in the value of the…
Q: 1. A factory equipment has an initial cost of P200,000.00. Its salvage value after ten years is…
A: initial cost = 200000 salvage value = 20000 Useful Life = 10
Q: A small print shop is investing in new printing equipment that will cost $30,000. They estimate that…
A: Given that :- New printing equipment cost $30,000 Additional revenues for every of the next 6 years…
Q: wo fadures are being considered for a particular job in a manufacturing firm. The pertinent data for…
A: Given information Fixture X Capital investment= $35000 Annual cost=$6000 Useful life=6 years Market…
Q: In year 0 you purchase an asset for $500,000 and in year 1 you receive a positive cash flow of…
A:
Q: Omar Shipping Company bought a tugboat for $75,000 (year 0) and expectedto use it for five years…
A: The net income can be calculated by using the following formula:
Q: A small print shop is investing in new printing equipment that will cost $30,000. They estimate that…
A: Answer; Given that :- A small print shop is investing in new printing equipment that…
Q: Consider the following investment: Initial cost = $150,000. Annual revenue = $50,000, Annual…
A: Given, Initial Cost : $150,000Annual Revenue : $50,000Annual Expenses : $15,000Total cashflow :…
Q: cash you have saved to manufacture the dou ase the equipment on the day you start the business. You…
A:
Q: DOUBLE DECLINING METHOD A certain type of machine loses 5% of its value each year. The machine…
A: Year Initial Book Value Depreciation Total Depreciation Book Value 1 2,000 2 3…
Q: In 2015, a firm has receipts of $8 million and expenses (excluding depreciation) of $4 million. Its…
A: Given information: Receipt = $8 million Expenses = $4 million Depreciation = $2 million Effective…
Q: machine has an initial cost of P50,000 and a salvage value of P10,000 after 10 years. What is the…
A: Intial cost of machine = 50000 Salvage value = 10000 Life of asset = 10 years Adjusted value = 50000…
Q: An asset for drilling was purchased and placed in service by a petroleum production company. Its…
A: Straight line (SL) method is charging same amount of depreciation each year. 200 % Declining balance…
Q: SHOW ALL SOLUTIONS. 1. An investment of P60,000.00 can be made in depreciable assets that will…
A:
Q: A trucking company computes depreciation on its vehicles by a mileage basis.Suppose a delivery truck…
A:
Q: A startup is considering buying a $295,000 piece of equipment. If it purchases the equipment, it…
A: Given information Initial investment= $295000---- by taking a loan Interest rate for repayment of…
Q: A machine is bought at P420,000 with an economic life of 6 years and a salvage value of P50,000. The…
A:
Q: Assume the purchase price of a combine is $250,000. It is estimated to have a salvage value of…
A: please find the answer below.
Q: A firm must decide between two designs. Their effective income tax rate is 33%, and MACRS…
A: Given information Two design Design A: Initial investment =$940000 Net revenue=$260000 Salvage…
Q: 2. An electric sewing machine costs P10,000 with a salvage value of P500 at the end of 10 years.…
A: Fixed assets are assets that a company keeps for a longer length of time.Depreciation is applied to…
Q: A procurement engineer bought a large transformer core for Php 250,000. Other expenses including…
A: Total Cost of Transformer = PHP 250,000 + PHP 30,000 = PHP 280000 Salvage value after 15 years = 25%…
Q: A startup is considering buying a $295,000 piece of equipment. If it purchases the equipment, it…
A: Given information Initial investment= $295000---- by taking a loan Interest rate for repayment of…
Q: A project capitalized for ₱45,000 invested in depreciable assets will earn a uniform, annual income…
A:
Q: Two fixtures are being considered for a particular job in a manufactunng firm The pertinent data for…
A: Annual worth or AW is referred to as the easy way of understanding the annual amount, for instance,…
Q: A small print shop is investing in new printing equipment that will cost $42,000. They estimate that…
A: Given information Initial investment=42000 Annual revenue=14000 Salvage value=3000 Tax rate=27%…
Q: - A tax duty free importation of a 30HP sandmill for paint manufacturing cost P360,000. Bank charges…
A: here by using the single line formula we calculate the Appraisal value which are as follow-
Q: A network switch costing Php 300,000 has an estimated life of 6 years with a book value of Php…
A: Given: Cost of network switch=Php 300000 Book value at the end=Php 75000 Useful Life=6 years To…
Q: A machine having a certain first cost has a life of 10 years and a salvage value of 6.6% of the…
A:
Q: 7. An asset has an initial cost of $80,000, a salvage value of $10,000, and a depreciation life of 8…
A: The term depreciation refers to an accounting method used to allocate the cost of a tangible or…
Q: 1. A company considers purchasing a new machine that costs P600,050.00. It is projected that the…
A: Net present value = Present value of benefits - Present value of costs
Q: An equipment costs P10,000 with a salvage value of P500 at the end of 10 years. Calculate the annual…
A: Equipment and machines lose some of their value over a period of time due to wear and tear.…
Q: 9. An optical scanning machine was purchased for P150,000 in the current tax year (year one) It is…
A: The MACRS depreciation method allows the business to recover the capitalized cost through obtaining…
Q: 7-7. You have a tax basis of $80,000 and a useful life of five years and no salvage value. Provide a…
A: Switching to Straight line method (SLM) occurs in the year when DDB method depreciation is lower…
Q: A firm must decide between two silicon layer chip designs from Intel. Their effective income tax…
A: given data Design A…
Q: Compute the salvage value of an equipment if its original cost is P 2 550 000. T economic life of…
A: Given the original cost = 2550000 Economic life = 15 years Annual depreciation = 83000
Step by step
Solved in 2 steps
- 9.16 You purchased a molding machine at a cost of $88,000. It has an estimated useful life of 12 ycars with a salvage value of $8,000. Determine the following: (a) The amount of annual depreciation computed by the straight-line method. (b) The amount of depreciation for the third year computed by using the double- declining-balance method.You are evaluating two different silicon wafer milling machines. The Techron | costs $264,000, has a 3-year life, and has pretax operating costs of $71,000 per year. The Techron Il costs $460,000, has a 5-year life, and has pretax operating costs of $44,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $48,000. If your tax rate is 22 percent and your discount rate is 12 percent, compute the EAC for both machines. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) > Answer is complete but not entirely correct. Techron I $ -134,840.83 Techron II $ -107,570.18The depreciation schedule for certain equipment has been arrived at by various methods. The estimated salvage value of the equipment at the end of its 7 years useful life is $366. Identify the resulting depreciation schedules. YEAR I || 1 2 3 4 5 6 7 IV $1335 2336.25 2775 3632 $1335 2002.5 1982 2273 $1335 1668.75 1416 1423 $1335 1335 1011 891 $1335 1001.25 722 558 $1335 667.5 515 349 $1335 333.75 368 219 Which scheme represents DDB depreciation and how much is the first year depreciation? a. III, $2775 O b. 1, $1335 O c. IV, $3632 O d. II, $2336
- A tractor costs $24,680, has an expected life of 12 years, and has a salvage value of $2,600. Use straight-line depreciation to find the yearly depreciation. Make a depreciation schedule for the first three years' depreciation. Complete the table. Year Depreciation 1 $ 2 3 $ $ Accumulated depreciation $ $ $ End-of-year book value $ $Gillespie Gold Products, Inc., is considering the purchase of new smelting equipment. The newequipment is expected to increase production and decrease costs, with a resulting increase in profits.First Cost is at $40,000; Savings per year is $10,000; Actual useful life is 5 years; Salvage value is$4000. a. Determine the ATCF using a tax rate of 42% and straight-line method of depreciation.b. If the average yearly inflation rate for the 5-year study period is 3.5%, what is the real-dollar ATCF that is equivalent to the actual-dollar ATCF? The base time period is year zero (b=0).Wildhorse Company purchased a computer for $9,440 on January 1, 2019. Straight-line depreciation is used, based on a 5-year life and a $1,180 salvage value. On January 1, 2021, the estimates are revised. Wildhorse now feels the computer will be used until December 31, 2022, when it can be sold for $590. Compute the 2021 depreciation. (Round answer to 0 decimal places, eg. 45,892) Depreciation expense, 2021 $
- 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?Consider the case of apiece of equipment costing $ 20000 and the scrap value $2000. the service life is estimated to be 5 years. Determine the asset value at the end of the first years, and the second years ? H. W at the end of 3d, 4th, 5th years. determine the depreciation costA machine was purchased at an original cost of P400,000 with a salvage value of P20,000. Life of this machine is expected to last for 6 years. It was used 4000 hours in the first year, 6000 hours in the second year, and 8000 hours on the third year. The machine is expected to last for 38,000 hours in a period of 6 years. Which of the following gives the depreciation at the end of the second year? (5 pts)
- An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $60,000, and it has an estimated MV of $12,000 at the end of an estimated useful life of 14 years. Double declining balance method is used to calculate the depreciation cost. a. What is the book value of the asset at the end of 5 years? b. What is the depreciation amount in the third year?You are evaluating two different silicon wafer milling machines. The Techron I costs $270,000, has a 3-year life, and has pretax operating costs of $73,000 per year. The Techron II costs $470,000, has a 5-year life, and has pretax operating costs of $46,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $50,000. If your tax rate is 24 percent and your discount rate is 10 percent, compute the EAC for both machines. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Techron I Techron IIAn equipment costs P10,000 with a salvage value of P500 at the end of 10 years. Calculate the annual depreciation cost by sinking fund method at 4% interest. A. P791.26 B. P950.00 C. P971.12 D. P845.32