Answered: A machine costing P250,000 has an…

A machine costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the end of the period. Compute the book value after 6 years using the declining balance method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: A firm is trying to decide between two equipment for a production activity. The following…

A: for breakeven point, the difference in the initial investment should offset the additional cost…

Q: is trying to decide between two equipment for a production activity. The following information is…

Q: A machine costing P250,000 has an estimated life of 15 years with a book value of P30,o00 at the end…

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

Q: A machine has a first cost of P88,155.25 and has an expected salvage value after 10 years…

A: Declining balance method : Under this method , depreciation is charged a fixed percentage on the…

Q: A machine costs $10,000, has an estimated life of 10 years and a scrap value of $1500. Assuming no…

A: Annual sinking funds are created to accumulate money required in the future requirements of the…

Q: value aft

A: Service Output Method also known as Working Hours Method. The formula : Depreciation per hour as, =…

Q: If machine has a first cost which is five times of its salvage value and the annual depreciation…

A: Calculation of first cost in pesos:: Given the depreciation expense charge is::P1452... Depreciation…

Q: Calculate the equal, end-of-period, annual cost of a machine which costs $75000 initially and will…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: A printing machine is bought at P 1.3 million and is estimated to have a salvage value of P100,000…

Q: Hunt Ltd is considering replacing all its offset printing machinery. The cost on 1.1.X1 will be £2m.…

A: Payback period of investment means in how much period or number of years the initial investment…

Q: A machine has a first cost of Php80,000 and salvage value of Php10,000 for 10 years. Using straight…

A: Meaning of depreciation: Depreciation refers to a reduction in the value of the asset due to use.…

Q: A milling machine has an initial cost is Php 370,000 and a service life of 10 years. Determine the…

A: Formula: Straight line method = ( cost of Asst - Salvage value ) / Useful life

Q: A machine has a first cost of P94,547.82 and has an expected salvage value after 10 years…

A: Depreciation is an expense which is charged on the non-current assets in order to record the regular…

Q: meter, with both components assumed to be paid at year-end. Actual use is expected to be 1,500 hours…

A: The net advantage lost by rejecting a different course of action is known as opportunity cost. Its…

Q: I have purchased a machine worth P1.862.585.00. And it needs maintenance at the end of every 6…

A: Purchase Price = 1,862,585 Maintenance Cost = 2% of Purchase Price = 2% * 1.862,585 = 37,251.70…

Q: A printing machine initially costs ₱141,000. It can be sold for ₱15,000 at the end of its 14-year…

A: Straight line depreciation rate = 1/14 x 100 = 7.14% double declining balance method rate 7.14% x 2…

Q: A machine has a first cost of P60,000 with interest rate of 12% annually. Expected salvage value…

A: Using sinking fund method:- Annual depreciation= [(FC-SV)*i]/[(1+i)n -1] Book value = FC -…

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: Consider a machine that initially cost $6,000 and has these estimated annual expenses and market…

A: Data Given: Initial cost of Machine= $6000 MARR =9% Required:: Economic service life = ?

Q: At i = 15% per year, a machine has a first cost of $15,000 and estimated operating costs and…

Q: An elevator system for a 15-yr old high-rise office building cost P 18M when first installed. The…

A: Double declining method of depreciation is an accelerated method of depreciation. Here the annual…

Q: A CNC machine costs $240,000. A facility purchases one and plans to use it for 11 years, at which…

A: Declining balance method is an accelerated depreciation method in which the depreciation expenses…

Q: A milling machine has an initial cost is Php 370,000 and a service life of 10 years. Determine the…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: 22. A certain machine has book value of P120,000 after 5 years and P80,000 after 7 years. The book…

A: Book value of asset is recorded by reducing depreciation of the asset from the initial cost of the…

Q: EXCEL, an equipment costing $100,000 has a useful life of 6 years. It has a resale value of $8,000.…

A: given information equipment costing = $100,000 useful life= 6 years resale value = 8000 annual cost…

Q: Hunt Ltd is considering replacing all its offset printing machinery. The cost on 1.1.X1 will be £2m.…

A: Accounting is a systematic process where accounting transactions are recorded and financial…

Q: A computer purchased for $1200 will have a salvage value of $600 after 6 years. Annual maintenance…

A: Correct answer is option (b). $298

Q: A factory asset has a first cost of $100,000, annual costs of $15,000 the first year and increasing…

A: Given, Initial cost =$100,000 Annual Costs = $15,000 increasing by 7.5%

Q: method, and (c) SYDM

A: Straight line method = ( cost of Asst - Salvage value ) / Useful life

Q: The 1st cost of a certain machine is P900,000.00 . After 8 years, it will have a salvage value of P…

A: It has been provided: First cost = P900,000 Salvage value after 8 years = P180,000 Time period = 3…

Q: 14.A machine has first cost of Php. 100,000 and its scrap value after 10 years is Php. 10,000.…

A: Data given: First cost = Php 100,000 Scrap value = Php 10,000 Life= 10 years

Q: A machine's useful life is 10 years. What is the EUAC for this mactinesm maintenance cost of $50,000…

Q: Note that the first revenues and expenses will occur at the end of year 2. period. (a) Determine the…

A: Information Provided: Investment Cost = $20,000 (Year 0) Investment Cost = $10,000 (Year 1) Salvage…

Q: An equipment costing P250, 000 has an estimated life of 15 years with a book value of P30, 000 at…

A: Under the declining balance method depreciation is calculated at a predetermined rate on the net…

Q: An electric power generating project has a first cost of $447,946 and annual operating costs of…

A: Interest rate = 10% Calculation of present value Year Cash outflow PVF(10%,Year) Present value…

Q: How much must be invested annually at 3.5% interest during the life of the machine to pay off the…

A: It has been given in the question that the interest rate is 3.5% annually. And the maintenance cost…

Q: A printing machine initially costs ₱160,000. It can be sold for ₱15,000 at the end of its 6-year…

A: Depreciation formula for declining balance method =Book value of asset* depreciation rate

Q: A furnace has an initial investment of $ 58,000 AND a recovery value after 7 years of 12.5% of…

A: Under the double-declining balance method depreciation is charged on the carrying value of the asset…

Q: K Company has purchased a new machine costing $27,000 and the machine is expected to reduce the…

A: The objective of this question is to calculate the Net Present Value (NPV) of the machine purchased…

Q: A new airconditioning unit costs P150,000 and will have a salvage value of P15,000 after 5 years.…

A: First cost (F) = P 150000 Let A = Annual saving Salvage value (S) = P 15000 n = 5 years r = 15%

Q: Remaining Time: 1 hour, 08 minutes, 38 seconds. v Question Completion Status Use the following…

A: The following computations are done to for Wonder Company to evaluate Net cashflows from Operating…

Q: A certain machine has book value of P120,000 after 5 years and P80,000 after 7 years. The book value…

A: Initial cost of equipment will be total of carrying value and accumulated depreciation

Question

A machine costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the end of the period. Compute the book value after 6 years using the declining balance method.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

E. Sum of the Year's Digit Method Problem: A structure costs P120,000. It is estimated to have a life of 5 years, with a salvage value at the end of its life of P1,000. Determine the book value at the end of each year of life. Use the sum- of-the-years-digit method. (Make a table in Microsoft Excel)
The following cost and benefit information has been estimated for a pump that has a 10-year useful life. Purchase Cost = $2,400 Annual Operating Cost = $1,200 Annual Maintenance Cost = $300 Annual Benefits = $2,000 Salvage Value = $200 Using the interest rate of 9%, find the capital recovery cost for this pump.
Calculate the present worth of all costs for a newly acquired machine with an initial cost of $24,000, no trade-in value, a life of 11 years, and an annual operating cost of $14,000 for the first 6 years, increasing by 10% per year thereafter. Use an interest rate of 10% per year. The present worth of all costs for a newly acquired machine is determined to be $
Machines that have the following costs are under consideration for a new manufacturing process. Compute the Equivalent Annual Worth with an interest rate of 8%, compounded semiannually. The machine last 4 years. First cost: $40,000 Semiannual Operating cost: $8,970 Semiannual incomes: $14,000 Salvage value: $10,000 a. EAW = $2,285 Ob. EAW = $175 O c. EAW = $1,958 O d. EAW $ 21,745
A machine with a purchase price of R1 200 000 is estimated to eliminate manual operations by R400 000 per year.The machine is expected to have a useful life of four years. Use the information provided above to calculate the Internal Rate of Return (expressed to twodecimal places) using interpolation.
K Company has purchased a new machine costing $27,000 and the machine is expected to reduce the operating expenses by $7,000 every year. The useful life of machine is 5 years and the machine is expected to have a zero-scrap! value at the end of its useful life. The company's required rate of return is 12%. Calculate the Net Present Value (NPV) of the machine. (Round intermediate calculations to 3 decimal places and final answer to the nearest dollar.)
A machine whose value is ($36,200), its saving value is $4,300, and its life span is ten years. Calculate the depreciation load, the recorded value, and the unhedged capital returns in each year of the life of this machine, knowing that the expected profit from it is (69%) annually
You are equipping an office. The total office equipment will have a first cost of2.0Mand a sal-vage value of$200,000. You expect the equipment will last 10 years. Use a spreadsheet to compute the40%bonus depreciation with MACRS depreciation schedule.
A machine was purchased 4 years ago. Its current market value is $14,000. Estimated future market values and annual operating costs for the next 5 years are given in the following table. What is the Economic service life of the machine if a 12% per year return is required? YearMarket Value,$Annual Operating cost,$ 10084 2 2684 2700 3000 3500 4900 1 8084 6000 3 4 2000 5
A printing machine initially costs ₱114,000. It can be sold for ₱15,000 at the end of its 9-year useful life.Using the double declining balance method, compute for the book value of the machine at the end of the second year of its useful life.
A machine’s first cost is $60,000 with salvage values over the next 5 years of are $50K, $40K, $32K, $25K, and $12K. The annual operating and maintenance costs are the same every year. Determine the machine total cost.
I have purchased a machine worth P1,680,676.00. And it needs maintenance every 6 months starting from its purchased date for the first 10 years of its useful life. The maintenance cost is equivalent to the 2% of the total machine cost. How much money should be prepare today to finance the requirement if the interest rate is 0.10 compounded quarterly?