A contractor can buy dump trucks for ₱ 800,000 each or rent them for ₱ 1,200 per truck per day. The truck has a salvage value of ₱ 100,000 at the end of its useful life of 5 years. The annual cost of maintenance is ₱ 20,000. Using annual cost method and 14% interest rate, determine the number of days per year that a truck must be used to warrant its purchased. Use sinking fund method of depreciation.

Q: A construction vehicle cost ₱ 1.2 million. It has a life of 5 years and a salvage value of ₱…

A: Interest rate on borrowings is the rate at which borrower is required to pay interest to the lender…

Q: A piece of equipment costs ₱355,000 including shipping, installation and taxes. The supplier assures…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: A machine can be bought for P56,000. Other expenses including installation amounted to P4000. The…

A: Depreciation: It refers to decrease in an asset's value over the years due to wear and tear or…

Q: A machine is to be purchased for Php155,000; it has an estimated life of 8 years and a salvage value…

A: Sinking Fund: A sinking fund consists of periodic (usually annual) contributions to a fund in order…

Q: The purchase of an item of construction equipment is fifty thousand Kenya shillings(kshs) . The…

A: Depreciation is the amount of reduction in the value of asset due to its normal usage in the…

Q: The boiler in a steam power plant costs P 25,000,000 and has a salvage value of P 850,000 at the end…

A: Depreciation ExpensesDepreciation expense is the methodical distribution of a long-term asset's cost…

Q: A machine has a first cost of P50,000 with interest rate of 10% annually. Expected salvage value…

A: concept. The Sinking Fund Method:- In this method,  sinking funds will accumulate for replacement…

Q: machine has a first cost of P800,000 and a salvage value of P50,000 at the end of its life after 10…

A: The return on investment is the profit earned annually above the annual cost of operating on initial…

Q: A piece of equipment costs ₱365,000 including shipping, installation and taxes. The supplier assures…

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: A piece of equipment costs ₱378,000 including shipping, installation and taxes. The supplier assures…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Determine the capitalized cost of a personal computer that worth Php 50,000 with a salvage value of…

A: We Know that capitalised cost is the present value of all cash outflow during the lifetime of the…

Q: A concrete bridge was constructed at a cost of P 1,500,000.00. Annual maintenance is P 15,000.00 and…

A: Please refer to the image below.

Q: g equipment that cost P100,00. After 8 years it will have estimated salvage value of P20,000.…

A: Depreciation: It is the allocation of  cost of a tangible or physical asset over its useful life  It…

Q: A motor truck has an original value of $2500, a probable life of 6 years, and a final salvage value…

A: We have; Original Value of machine is $2500 Probable life is 6 years Salvage Value is $200 Interest…

Q: Consider an asset cost 1.5 million and is depreciated straight ine to zero over its eight years tax…

A: Salvage value is the value after selling off the asset when it is no longer in service. The market…

Q: A lathe machine costs ₱650,000 and the salvage value of ₱65,000 after 20 years.   Find the book…

A: Book value:   It is the carrying value of an asset after deducting depreciation expenses. The…

Q: 2. A residential lot has a property value of Php 53,000, and it is depreciated 11% sinking fund…

A: Depreciation charging methods include: Straight-line method Double declining method Sum of years…

Q: A printing machine initially costs ₱139,000. It can be sold for ₱15,000 at the end of its 11-year…

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: The purchase of an item of construction equipment is fifty million Kenya shillings(kshs) . The…

A: Depreciation is the amount of reduction in the value of asset due to its normal usage in the…

Q: Capitalized cost is an application of perpetuity. It is the sum of the first cost and the present…

A: A perpetuity is a series of cash payments that have no maturity value. The capitalized cost is used…

Q: A machine costs Php 300,000 with a salvage value of Php 50,000 at the end of its life of 10 years.…

A: Machine cost (C) = Php 300000 Salvage value (S) = Php 50000 n = 10 years r = 6%

Q: determine book value at the end of 3rd year, accrued depreciation at the end of 2nd year and annual…

A: Accrued depreciation at end of 3rd year: =(Cost- Salvage)x [(1+i%)3 -1]/[(1+i)5 -1] here i =…

Q: determine the capitalized cost. Draw the diagram.

A: A stream of equal cash flows paid or received periodically is termed as annuity. Annuity is either…

Q: A new engine was installed by a textile plant at cost of P and projected to have a useful life of 15…

A: Given information : Useful life 15 Salvage value 31000 Capitalized cost 360000 Interest…

Q: What is the annual depreciation? What is the book value after 6 years? What is the total…

A: Particulars Amount (P) Cost of equipment 500000 Installation cost 60000 Other Cost 40000…

Q: First Cost 300000 Present worth of the annual maintenance cost *Letters only Perpetuity of the…

A: Given:- Initial cost=P300000 Replacement required at every 15 years Annual maintenance cost= P5000…

Q: The cost of an asset is $2,300,000 and has a useful life of 5 years. If the asset can be sold for…

A: Straight line depreciation method is a method of depreciation in which cost of asset is allocated…

Q: Pamantasan ng Lungsod ng Maynila buys a solar panel unit for P105,000. The shipping and installation…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: A certain asset valued at P 12,000.00 with a 4-year life, is estimated to have a scrap value of P…

A: solution given cost of asset (P)                =12,000 salvage value (L)               =600  n…

Q: (a) Declining balance method, (b) DDB method, (c) sinking fund method g iven interest rate at 12.5…

A: Since this is multi- part question, we are going to solve only first three parts for you. To get the…

Q: The concrete pavemen requires $15,000 of repair during years 12, 25 and 40. The asphalt pavement…

A: Concept of PWF and LCC

Q: Depreciation

A: Creating a fund for future machine purchase is a wise decision. It lets you’ve money for replacement…

Q: Pads Corp. is contemplating the purchase of a large stamping machine which will cost Php 500.000.…

A: The question is based on the concept of Depreciation Accounting.

Q: If the current value of a chemical plant is $ 800 thousand, its scrap value is $ 50 thousand, the…

A:

Q: An equipment cost P60,000 today and its salvage value is P20,000 after 6 years. Calculate its…

A:

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.