25UMI BOLliesFinancial year 20211 200Financial year 2022900Wicketer MachineWTS has elected to diversify its operations by producing sustainable plastic bags. On 1 April 2020,a wicketer machine was purchased to create these plastic bags and was immediately brought intouse.The cost of the wicketer machine is as follows:Purchase PriceR70 000InstallationR15 000Staff TrainingR6 500The machine has a useful life of 10 years and management's policy is to revalue the machineevery two years from the date of purchase. The entity adopts the elimination method forrevaluations. The machine is depreciated on a straight-line basis.An independent valuator who is a competent industry expert has determined the fair value of themachine to be R90 000 on the 2nd anniversary of the purchase of the machine.The Financial Director has also approved a policy that the revaluation surplus may be transferredto retained earnings as the asset is used.Required:Q.1.1Calculate the carrying value of the Fruit Filtration Machine at 30 June 2022. Question 1WorthTheSqueeze (WTS) (Pty) Ltd is a cold pressed juice company based in Durban. WTS pridesthemselves on sourcing the freshest organic ingredients for their juices as well as packaging andbottling them sustainably.The details of WTS assets are as follows:Fruit Filtration MachineMachine NameCostPurchase DateAppealer X87501-Jan-212 800 000The entity follows the component approach in the depreciation of its filtration machines. Thefiltering unit is depreciated in accordance with the amount of 250ml juice bottles produced andthe rest of the machine is depreciated on a straight-line basis.Management estimates that the filtration machines have an eight-year useful life with no residualvalue.The filtering unit is 40% of the total cost and it is estimated that the machine will be able to filter4 000 250ml juice bottles over its useful life. The following information is available in respect ofjuice production (250ml bottles):250ml BottlesFinancial year 20211 200900Financial year 2022Wicketer MachineWTS has elected to diversify its operations by producing sustainable plastic bags. On 1 April 2020,a wicketer machine was purchased to create these plastic bags and was immediately brought intouse.< >

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25UMI BOLLIES Financial year 2021 1 200 Financial year 2022 900 Wicketer Machine WTS has elected to diversify its operations by producing sustainable plastic bags. On 1 April 2020, a wicketer machine was purchased to create these plastic bags and was immediately brought into use. The cost of the wicketer machine is as follows: Purchase Price R70 000 R15 000 Installation Staff Training R6 500 The machine has a useful life of 10 years and management's policy is to revalue the machine every two years from the date of purchase. The entity adopts the elimination method for revaluations. The machine is depreciated on a straight-line basis. An independent valuator who is a competent industry expert has determined the fair value of the machine to be R90 000 on the 2nd anniversary of the purchase of the machine. The Financial Director has also approved a policy that the revaluation surplus may be transferred to retained earnings as the asset is used. Required: Q.1.1 Calculate the carrying value of the Fruit Filtration Machine at 30 June 2022.

25UMI BOLLIES Financial year 2021 1 200 Financial year 2022 900 Wicketer Machine WTS has elected to diversify its operations by producing sustainable plastic bags. On 1 April 2020, a wicketer machine was purchased to create these plastic bags and was immediately brought into use. The cost of the wicketer machine is as follows: Purchase Price R70 000 R15 000 Installation Staff Training R6 500 The machine has a useful life of 10 years and management's policy is to revalue the machine every two years from the date of purchase. The entity adopts the elimination method for revaluations. The machine is depreciated on a straight-line basis. An independent valuator who is a competent industry expert has determined the fair value of the machine to be R90 000 on the 2nd anniversary of the purchase of the machine. The Financial Director has also approved a policy that the revaluation surplus may be transferred to retained earnings as the asset is used. Required: Q.1.1 Calculate the carrying value of the Fruit Filtration Machine at 30 June 2022.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Scenario 1: Four years ago, The Kresser Sdn. Bhd. purchased an Industrial Shredder Machine. Because of increasing maintenance costs for this equipment, a new piece of machine is being considered for the assembly line. The cost characteristics of the defender (present machine) and the challenger are shown in Table 1 below: Table 1 Defender Original cost = RM9,000 Maintenance = RM500 in year one (four years ago) increasing by a uniform gradient of RM100 per year thereafter Market Value (MV) at end of life = 0 Original estimated life = 9 years Challenger Purchased cost =RM11,000 Maintenance = RM150 per year 2 Market Value (MV) at end of life = RM3,000 Estimated life = 5 years Suppose a RM6,000 Market value is available now for the defender. Perform a before- tax analysis, using before-tax MARR of 15%, to determine which alternative to select. Be sure to state all important assumptions you make, and utilize a uniform gradient in your analysis of the defender.
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Question 07: Virat Kohli Welders is planning to replace an old machine with a new one to improve efficiency in its production process. The machine will increase the efficiency as it is more modern and will result in an incremental savings of $80,000 per year. The old machine was bought 3 years ago at a cost of $270,000. The new machine will cost $420,000. Both machines have useful lives of 6 years. The machines are depreciated to zero for tax purpose over the six-year life using a straight-line depreciation method. The tax rate is 34% and the required rate of return is 11%. The old machine has no salvage value at the end of its life but can be sold now at a cost of $100,000. The new machine will have a salvage value of $80,000 at the end of its life. Should the new machine be purchased?
Accessibility: Unavailable QUESTION 6 Simple Rate of Return Method The management of Stillford Micro Brew is considering the purchase of an automated bottling machine for $80,000. The machine would replace an old piece of equipment that costs $33,000 per year to operate. The new machine would cost $10,000 per year to operate. The old machine currently in use could be sold now for a scrap value of $5,000. The new machine would have a useful life of 10 years with no salvage value. Required: Compute the simple rate of return on the new automated bottling machine. 2
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Example#19 SW# A piece of new equipment has been proposed by engineers to increase the productivity of a certain manual welding operation. The investment cost is $25,000, and the equipment will have a market (salvage) value of $5,000 at the end of its expected life of five years. Increased productivity attributable to the equipment will amount to $8,000 per year after extra operating costs have been subtracted from the value of the additional production. Suppose that E=MARR= 20% per year. Wha is the project's ERR, and is the project acceptable? Create a Cashflow diagram. IND
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SH W S Current Attempt in Progress Bridgeport Hammocks is considering the purchase of a new weaving machine to prepare fabric for its hammocks. The machine under consideration costs $67,100 and will save the company $10,000 in direct labor costs. It is expected to last 10 years. Click here to view the factor table. (a) Calculate the internal rate of return on the weaving machine. (Round answer to 0 decimal place, e.g. 15.) H and Internal rate of return (b) If Bridgeport uses a 10% hurdle rate, should the company invest in the machine? eTextbook and Media Save for Later 3 So E D C 4 Ⓒ stv 888 R F 26 5 TS A T G 6 % B MacBook Air 223 Y OCT 5 H 3 N 00 FY H 8 Dil FO M I Attempts: 0 of 3 used Submit Answe W 9 K DO भ6 O L command F10 P V x opt
Help Save & Exit Subm 16 Assume that a company is considering purchasing a machine for $50,000 that will have a five-year useful life and no salvage value. The machine will lower operating costs by $17,000 per year. The company's required rate of return is 18%. What is the net present value of this investment? Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using table. Multiple Choice $3,159 О $3,896 О О $3,796 $3,359