3) A generator was purchased two years ago at a price of P 1, 250,000 with a governmental tax of 4% of its price. On that time, installation charges amounts to P120, 000 with a miscellaneous expenses of P 275, 000. It is expected that five years from now, it will depreciates a total value of P 1, 307, 579. 97. The generator would last ten more years from now. Depreciation method uses the Matheson Formula. Construct a depreciation table for the said generator.

3) A generator was purchased two years ago at a price of P 1, 250,000 with a governmental tax of 4% of its price. On that time, installation charges amounts to P120, 000 with a miscellaneous expenses of P 275, 000. It is expected that five years from now, it will depreciates a total value of P 1, 307, 579. 97. The generator would last ten more years from now. Depreciation method uses the Matheson Formula. Construct a depreciation table for the said generator.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

See similar textbooks

Similar questions

Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.
5. The price of a system of jockey pumps is P5,500,000. PLM decided to purchase this system and spent P215,500 for shipping and installation. The equipment will last for 10 years with a salvage value of 3% of its total cost. Determine the following: a. Yearly charge of depreciation using SL method. b.Depreciation charge on the 6thyear, and book value at the end of the 8thyear using SYD method.
4) A steam turbine was purchased five years ago at a price of P 2, 750, 000 including tax. Installation and freight charges amounts to P 220, 000 with a miscellaneous expenses of P 175,000. It is expected to last twenty more years with a scrap value of P 315, 000. Depreciation method uses the Sinking fund with an interest rate of 10%. a) What would be the book value of the turbine seven years from now? b) Assuming ten years from now, the steam turbine was totally damaged and needs to be replace by a new one which costs P 3.5 million including tax and other charges, how much more money does the owner needs?
The price of a system of jockey pumps is P5,500,000. PLM decided to purchase this system and spent P215,500 for shipping and installation. The equipment will last for 10 years with a salvage value of 3% of its total cost. Determine the following: a. Yearly charge of depreciation using SL method. b. Depreciation charge on the 6 th year, and book value at the end of 8th year using SYD method.
6) A company is considering purchasing a new automated machine that is expected to generate an additional income of $125,000 annually. The equipment will have an initial cost of $187,500 and estimated annual operating and maintenance costs of $50,000. Its estimated salvage value at the end of its useful life of 4 years will be $37,500. The equipment is a MACRS-GDS 3-year property for calculating depreciation deductions. The effective tax rate is 35%. For this new machine, determine the after-tax cash flow for each year of operation. (Round off values to the nearest dollar) ΕΟΥ BTCF a) 0 1 2 3 4 MACRS-GDS Deduction Taxable Income Tax ATCF b) (8 points) If the after-tax MARR is 10% per year compounded annually, compute the PW of the after-tax cash flows. Based on this PW, would you recommend the purchase of this new equipment?
A depreciable property costing P1,400,000 with original residual value of P80,000 after 10 years, had been revalued at a replacement cost of P1,680,000 with residual value of P20,000. The age of the asset is four years when it was revalued. What is the revaluation surplus? Please answer it complete using good accounting form. Thank you
A piece of machinery costs P50,000 and has an anticipated P8,000 salvage value at the end of its six-year depreciable life. Using straight line method, what is the annual cost of depreciation?
Consider an asset cost 1.5 million and is depreciated straight ine to zero over its eight years tax life . The asset is to be used in a six year project and at the end of the project the asset can be sold for 250,000 $ . If the tax rate is 24 % calculate the after tax salvage of the asset
An equipment in a power station costs Ksh.1,560,000 and has a salvage value of Ksh.60,000 at the end of 25 years .Determine the depreciated value of the equipment after 20 yrs using the following methods;(i) Straight line method(ii) Diminishing value method(iii) Sinking fund method at 5% compound interest annually.
The initial cost of an evaporative crystallizer including its installation is P930,000. The approve life of the equipment is 13 years for depreciation. The estimated salvage value of the equipment is P66,000 and the cost of dismantling is P22,000. Using DBM method, what is the annual depreciation charge and what is the book value of the machine at the end of the eight year.
Electric generating and transmission equipment is placed in service at a cost of $3,000,000. It is expected to last 30 years with a salvage value of $250,000.a. What is the MACRS-GDS property class? b. Determine the depreciation deduction and the unrecovered investment during each of the first 4 tax years.