4. Determine the capitalized cost of a research laboratory that requires P5M fororiginal construction; P100,000 at the end of every year for the first 6 years andthen P120,000 each year thereafter for operating expenses, and P500,000 every 5years for replacement of equipment with interest at 12% per annum?5. A machine cost P8000 and an estimated life of 10 years with a salvage value ofP500. What is its book value and total depreciation after 8 years using the straightline method? i6. An engineer bought an equipment for P500,000. He spent an additional amountof P30000 for installation and other expenses. The salvage value is 10% of the firstcost. If the book value at the end of 5 years will be P291,500 using the straight linemethod of depreciation, compute the useful life of the equipment in years.

I am answering the first question as per bartleby guidelines. Please re-submit the remaining…

4. Determine the capitalized cost of a research laboratory that requires P5M for original construction; P100,000 at the end of every year for the first 6 years and then P120,000 each year thereafter for operating expenses, and P500,000 every 5 years for replacement of equipment with interest at 12% per annum?

4. Determine the capitalized cost of a research laboratory that requires P5M for original construction; P100,000 at the end of every year for the first 6 years and then P120,000 each year thereafter for operating expenses, and P500,000 every 5 years for replacement of equipment with interest at 12% per annum?

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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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

4. Determine the capitalized cost of a research laboratory that requires P5M for
original construction; P100,000 at the end of every year for the first 6 years and
then P120,000 each year thereafter for operating expenses, and P500,000 every 5
years for replacement of equipment with interest at 12% per annum?
5. A machine cost P8000 and an estimated life of 10 years with a salvage value of
P500. What is its book value and total depreciation after 8 years using the straight
line method? i
6. An engineer bought an equipment for P500,000. He spent an additional amount
of P30000 for installation and other expenses. The salvage value is 10% of the first
cost. If the book value at the end of 5 years will be P291,500 using the straight line
method of depreciation, compute the useful life of the equipment in years.

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