3. A machine costs PhP 400,000 with a salvage value of PhP 20,000. Life of it is six years. In the first year, 4000 hours. In the second year, 6000 hours and 8000 hours on the third year. The expected flow of the machine is 38000 hours in six years. What is the Book value at the end of the second year. A. PhP 100,000 B. PhP 300,000 C. PhP 60,000 D. PhP 220,000

3. A machine costs PhP 400,000 with a salvage value of PhP 20,000. Life of it is six years. In the first year, 4000 hours. In the second year, 6000 hours and 8000 hours on the third year. The expected flow of the machine is 38000 hours in six years. What is the Book value at the end of the second year. A. PhP 100,000 B. PhP 300,000 C. PhP 60,000 D. PhP 220,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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. 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 = P 78,750.00Note: Provide solution since the answers are already shown and include the CASH FLOW DIAGRAM. Please use manual solution and not excel solutions
USE MANUAL SOLUTIONA machine has a first cost of ₱100,000 and salvage value of ₱10,000 after 10 years. The annual maintenance of the machine is ₱4,000. If interest rate is 10%, find the annual cost of the machine. A. ₱17,000.34 B. ₱19,647.08 ( ANSWER) C. ₱21,083.56 D. ₱32,074.56
Use Service-Output Method. A Machine costs ₱80,000 and an estimated life of 10 years with a salvage value of ₱5,000. 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? Answer: BV4 = P 78,750.00Show Solution
6. A concrete pavement on a street would cost P 20,000 and would last for5 years with negligible repairs. At the end of each 5 years, PhP 1500 would be spent to remove the old surface before P 20,000 is spent again to lay a new surface. Find the annual cost of the pavement at 5%. A. PhP 4,890.96 B. PhP 2,490.72 C. PhP 97,819.16 D. PhP 49,814.40
Pls answer asap. Thank you .. I will rate helpful
2. A mechanical equipment that has a first cost of Php8,000,000 has a salvage value of Php1,200,000 after 12 years and a replacement cost of Php 8,500,000. It is required to maintain the equipment for the first % of its life amounting to Php30,000 yearly. Find the Capitalized cost. Use i=8% per annum.
A lathe machine costs ₱650,000 and the salvage value of ₱65,000 after 20 years. Find the book value at the end of 5 years by DBM and the book value at the end of 5 years by DDBM
A machine has a first cost of Php80,000 and salvage value of Php10,000 for 10 years. Using straight line method, determine the book value after 6 years.
An asset which has a first cost of RM 40,000 is expected to have an annual operating cost of RM 15,000 per year. It will provide the needed service for a maximum of 6 years. If the salvage value changes as shown below , determine the economic life of the asset at 20 % per year.
Machine X has an intial cost of $10,000. It is expected to last 12 years, to cost $200 per year to maintain and to have a salvage value of $1,000 at the end of its useful life. The equivalent uniform annual cost of the machine at 8% interest is most nearly ___________. A. $1,160 B. $1,507 C. $1,580 D. $1,475 E. None of the above
Given the two machines' data Machine A Machine B First Cost P8,000.00 P14,000.00 Salvage value Annual operation 2,000.00 3,000.00 2,400.00 Annual maintenance 1,200.00 1,000.00 Taxes and insurance 3% 3% Life, years 10 15 Money is worth at least 16%. What is the exact rate of return?
3. A food processing plant consumed 600,000 kWh of electric energy annually and pays an average of Php 1.00/kWh. A study is being made to generate its own power to supply the plant's energy requirement. The power plant installed would cost Php 1,500,000. Annual operation and maintenance, Php 350,000. Other expenses, Php 85,000 per year. Life of power plant is 15 years. The salvage value ate the end of life is Php 350,000. Annual taxes and insurance, 4% of the first cost. The rate of interest is 12%. Using the sinking fund method for depreciation, determine if the power plant is justifiable. Use Rate of Return (ROR) method and Annual Worth (AW) method. If the calculations predicted that the plant is a good investment, when will the payback period be?