1,300 sq.f.t building costs $110 per sq.ft to build new. Depreciation is estimated to be 10%. The land is estimated at $40,000. What is the value estimated by the cost approach? a. $190,114 b. 211,326 c. 138,358 d. 109,119 e. 168,700
Q: Delaney Company is considering replacing equipment that originally cost $518,000 and that has…
A: Sunk cost refers to the cost or money which is already expended and irrecoverable in nature.
Q: nce are estimated at $4,000, $9,750 and 2000, respectively on. The value of the land is estimated to…
A: The cost technique calculates value by multiplying the land value by the replacement cost cost of a…
Q: A company purchased an asset for $3,700.000 that will be used in a 3-year project. The asset is in…
A: Purchase price of asset =3,700,000Number of years =31-year depreciation =33.33%2-year depreciation…
Q: An asset that costs $3 million dollars will be depreciated to a zero book value across a 12 year…
A: Deprecation would be charge on useful life of Assets. There are two method of deprecation SLM &…
Q: What is the initial book value of a new piece of equipment given the following information? Note…
A: Book value refers to the amount of an asset according to the books or accounts as shown in the…
Q: Your company has purchased a large new trucktractor for over-the-road use (asset class 00.26). It…
A: MACRS stands for Modified Accelerated Cost Recovery System, which is defined as the present tax…
Q: Appraiser John is evaluating a 1,200-square-foot log cabin, whose owner is refinancing. He…
A: Total square foot = 1,200 Cost of replacement = $80 Depreciation = 20% Value of land = $48,000
Q: A real-estate developer seeks to determine the most economical height for a new office building,…
A: Given 2 floors 3 floors 4 floors 5 floors Building Cost 500,000 750,000 1,250,000…
Q: In order to carry a new investment project, company A has to purchase a machine for OMR 400,000.…
A: Relevant cost seems to be a concept used in accounting systems to define preventable costs that…
Q: A company is considering three pieces of equipment. Equipment A has a first cost of $80,000, AOC of…
A: NPV represents the amount of profitability generated by an investment and is expressed in absolute…
Q: Determine the economic lives for assets A and B.
A: The economic life of any asset tells about the useful life of the asset to the business. In…
Q: Assume that a company is considering buying a new piece of equipment for $240,000 that would have a…
A: · Time value of money states that the value of money decreases over time. · The…
Q: Petroleum drilling equipment costs a company $125,000. The equipment has an estimated salvage value…
A: As per the Honor code of Bartleby we are bound to given the answer of first question part only,…
Q: Given the following information and assuming straight-line depreciation to zero, what is the IRR of…
A: IRR is the financial break even point where the return from a project is equal to the cost of…
Q: ation tax shield? 5. Calculating Depreciation A piece of newly purchased industrial equipment costs…
A: Solution : Deprecation rate was fix under MACRS Table which was mentioned below & also…
Q: se after it has extracted the natural resource. Geological surveys estimate that the recoverable…
A: In the given question, Cooler company is estimating to extract 5,000,000 tons of reserve from a land…
Q: Consider each of the following projects: Accounting Project Break-Even 115,800 114,000 5,340 Unit…
A: Given, The projects A Project B Project Z
Q: A kitchen cooking equipment costs 5800 RO and it has a life of 8 years with a scrap value of 1000…
A: Formula for calculation of Rate under Written down value Method Rate of depreciation = 1 – [(Scrap…
Q: Assume that a company is considering buying a new piece of equipment for $250,000 that would have a…
A: Net present value (NPV) is the difference between the current value of cash and the future worth of…
Q: A machine with a cost of $120,000 has an estimated residual value of $15,000 and an estimated life…
A: b. $35,000Explanation:To calculate the depreciation expense for the second full year using the…
Q: A ceiling fan costs 1,680 has an economic life of 3 years and has scrap value of 20. What is the…
A: Depreciation refers to the method of allocating the costs of the assets over their useful life. It…
Q: 16. An old pump costs P25,000 a year to maintain. What expenditure for a new pump is justified if no…
A: "Since you have asked multiple questions, we will answer the first question for you, Kindly repost…
Q: Delaney Company is considering replacing equipment that originally cost $519,000 and that has…
A: A sunk cost means cost that is incurred by the businesses in past but this cost cannot be recovered…
Q: calculate the removable cost of a building under IFRS
A: Given in the question:Discount rate = 7%Removable cost after 20 Years = $100,000Building Cost =…
Q: Delaney Company is considering replacing equipment that originally cost $496,000 and has accumulated…
A: Sunk cost means the cost incurred in past and do not have any effect on the current decision-making…
Q: A 2,400 square foot building has an remaining economic life of 55 years. Its current effective age…
A: Depreciation is the amount of expense that is incurred when the value of assets is decreasing with…
Q: A new machine with a purchase price of $90,429.00, with transportation costs of $9,194.00,…
A: Explanation: Cost Basis of a new machinery will be Purchase price + Transportation Cost +…
Q: A boiler was installed at a cost of $500,000 with a 5-year recovery period. If MACRS depreciation is…
A: Depreciation schedule: Year Dep rates (MARC %) Depreciation Ending book value 1 20% 500,000*20%…
Q: The cost of an asset is $1.200,000, and its residual value is $180,000. Essmated usetul ife of the…
A: Formula: Depreciation rate = ( 100 / Useful life years ) x 2
Q: calculated the annual depreciation charge for year 10(d10)
A: Depreciation: The cost of the asset which is spread over the benefits of the estimated useful life…
Q: Determine which machine is better to purchase, if i = 10%. 1. Use a B/C 2. Use a Payback Period
A: Benefit-Cost Ratio (B/C): This ratio shows the relationship between the benefits and costs for the…
Q: Assume that a company is considering buying a new piece of equipment for $250,000 that would have a…
A: NPV (Net Present Value) is a financial metric used to evaluate the profitability of an investment by…
Q: An asset cost $200,000. It has a salvage value of $40,000. It has a 10 year life. What would…
A: There are different methods of deprecation that are commonly used like straight line depreciation…
Q: A company is considering three pieces of equipment. Equipment A has a first cost of $80,000, AOC of…
A: When a project has an initial cost given as well as its annual operating costs and salvage values,…
Q: Delaney Company is considering replacing equipment that originally cost $548,000 and has accumulated…
A: Sunk costs refer to expenses where the money has already been spent and cannot be recovered. This…
Q: A 5-year project requires equipment costing $13,000. Tax law requires the use of straight-line…
A: The objective of the question is to calculate the book value of the equipment at the end of the…
Q: The cost of a new machine is $40,000 and the new machine takes $2,000 to install. At the end of its…
A: Depreciation is the way of allocating the capitalized cost of assets over its useful life. The…
Q: An industrial air conditioner with an expected useful operating life of 30.000 hours costs $45,000.…
A: Depreciation is the reduction in the value of a fixed asset because of wear and tear over the years…
Q: The pharmacy’s delivery van cost $12,000.00. Its estimated useful life is 10 years, and the disposal…
A: Van cost = $ 12000 Life = 10 Years Disposal value = $ 1500
Q: Your company has purchased a large new trucktractor for over-the-road use (asset class 00.26). It…
A: MACRS DepreciationMACRS (Modified Accelerated Cost Recovery System) depreciation is a method used…
Q: If the cost of the truck is OMR 30,000 and the annual depreciation expense OMR 2,000. How much will…
A: Book Value = Cost of Truck - Depreciation Expense
Q: Multiple Choice O O O $0 $28,000 $8,500 $13.500
A: In straight line depreciation method there is constant annual uniform depreciation each year during…
Q: 50 Riverboat Adventures pays $310,000 plus $15,000 in closing costs to purchase real estate. The…
A: The process of determining, accumulating, and assigning costs to cost items like departments, goods,…
Q: You are evaluating two different milling machines to replace your current aging machine. Machine A…
A: Equivalent Annual Cost refers to the annual cost of operation of a machine or the project. It is the…
Q: new machine was bought for $8,500 with a life of eight years and no salvage value. Its annual…
A: For finding out equivalent annual cost we have to find present value FACTOR for ANNUITY and from…
$1,300 sq.f.t building costs $110 per sq.ft to build new.
a. $190,114
b. 211,326
c. 138,358
d. 109,119
e. 168,700
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- Delaney Company is considering replacing equipment that originally cost $518,000 and that has $362,600 accumulated depreciation to date. A new machine will cost $837,000. What is the sunk cost in this situation? Oa. $681,600 Ob. $124,320 Oc. $155,400 Od. $518,000Suppose that you are asked to derive the depreciation rate for a house on rural property. The contributory value of the house is $50,000, the replacement cost is estimated to be $80,000, and its effective age is 10 years. Calculate the annual percentage depreciation for this house. 3% 3.75% 4% 4.75%A building that costs P1,200,000 has accumulated depreciation of P500,000. The book value of the building is: a. P500,000 b. P700,000 c. P1,200,000 d. P1,700,000
- Engineering Economics Determine the capitalized cost of a machine that was purchased for P100, 000 and requires annual maintenance of P18,000 if interest is 8% a. 305, 000 b. 315, 000 c. 325, 000 d. 335, 000 e. 345, 000Delaney Company is considering replacing equipment that originally cost $600,000 and has accumulated depreciation of $420,000 to date. A new machine will cost $790,000. The sunk cost in this situation is a. $790,000 b. $190,000 c. $370,000 d. $180,000A depreciable asset has a cost of P120,000, estimated useful life of 8 years, and an estimated residual value of P20,000.1. What is the depreciation rate if you are using the straight line method?2. What is the depreciation rate if you are using 150% declining balance method?3. What is the depreciation rate if you are using double declining balance method?Note: For nos. 1 to 3, the rate must be rounded off to two decimal places. Ex: 10.00%, 12.30%, 15.55%4. What is the depreciation rate if you are using the declining balance method?Note: For no. 4, the rate must be rounded off to 6 decimal places. Ex: 10.123456%5. Using SYD method, what is the depreciation expense for the 1st year?6. Using SYD method, what is the carrying amount at the end of the 6th year?7. Using double declining balance method, what is the carrying amount at the end of the 3rd year? Subparts 4-5 only
- A depreciable asset has a cost of P120,000, estimated useful life of 8 years, and an estimated residual value of P20,000.1. What is the depreciation rate if you are using the straight line method?2. What is the depreciation rate if you are using 150% declining balance method?3. What is the depreciation rate if you are using double declining balance method?Note: For nos. 1 to 3, the rate must be rounded off to two decimal places. Ex: 10.00%, 12.30%, 15.55%4. What is the depreciation rate if you are using the declining balance method?Note: For no. 4, the rate must be rounded off to 6 decimal places. Ex: 10.123456%5. Using SYD method, what is the depreciation expense for the 1st year?6. Using SYD method, what is the carrying amount at the end of the 6th year?7. Using double declining balance method, what is the carrying amount at the end of the 3rd year?Delaney Company is considering replacing equipment that originally cost $496,000 and has accumulated depreciation of $347,200 to date. A new machine will cost $794,000. The sunk cost in this situation is a.$148,800 b.$119,040 c.$645,200 d.$496,000Delaney Company is considering replacing equipment that originally cost $600,000 and has accumulated depreciation of $420,000 to date. A new machine will cost $790,000 and the old equipment can be sold for $8,000. The sunk cost in this situation is a.$290,000 b.$188,000 c.$180,000 d.$172,000
- A Machine costs ₱80,000 and an estimated life of 10 years with a salvage value of ₱5,000. What is the book value after 5 years using the following methodology? a. Straight Line Method. BV5=₱42,500 b. Sinking Fund Method if i=9%. BV5=₱50,456.44 c. Declining Balance Method if the depreciation cost is equal to the value of i. BV5=₱49,922.57 d. Double Declining Balance Method. BV5=₱26,214.40 e. Sum of the Years Digit Method. BV5=₱25,454.5 f. Service-Output Method. Assuming that the total service of the machine is 1,497,600 hours and the number of working days per year is 260 days. What is the book value after 4 years if the machine production time a is 24 hours? BV4=₱79,687.38Given the following data of equipment A and B. A First Cost P 50 000 P 150 000 2000 Salvage Value Annual Maintenance 6000 Economic life 6000 3000 5 15 The MARR is 12%. Use sinking fund depreciation. What is the rate of return for the additional initial investment on equipment B?An asset cost $200,000. It has a salvage value of $40,000. It has a 10 year life. What is its depreciation expense if the company uses straight-line depreciation? Group of answer choices $200,000 $160,000 $20,000 $16,000
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)