A tax- and duty-free importation of a 30 HP sandmill (for paint manufacturing) cost P 360,000, CIF Manila. Bank charges, arrastre and brokerage cost P 5,000. Foundation and installation costs were P 25,000. Other incidental expenses amounted to P 20,000. Salvage value of the mill is estimated to be P 60,000 after 20 years. Find the appraisal value of the mill, using straight-line depreciation, at the end of: a. 10 years b. 15 years

A tax- and duty-free importation of a 30 HP sandmill (for paint manufacturing) cost P 360,000, CIF Manila. Bank charges, arrastre and brokerage cost P 5,000. Foundation and installation costs were P 25,000. Other incidental expenses amounted to P 20,000. Salvage value of the mill is estimated to be P 60,000 after 20 years. Find the appraisal value of the mill, using straight-line depreciation, at the end of: a. 10 years b. 15 years

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

3 Question 3 options: At any point in time, the cost of equipment less any depreciation to date is known as
7. An asset has an initial cost of $80,000, a salvage value of $10,000, and a depreciation life of 8 years. a) Determine the book value for year 3 using straight-line depreciation. b) Determine the depreciation for year 3 using double declining balance depreciation. Determine the equivalent annual capital recovery_plus a return of 10% for year 3, assuming double declining balance depreciation. c)
< A crane rental company has acquired a new heavy-duty crane for $210,000. The company calculates depreciation on this equipment on the basis of number of rentals per year, and the salvage value of the crane at the end of its 9-year life is $20,000 If the crane is rented an average of 101 days per year, what is the depreciation rate per rental? The depreciation is $ per day of rent. (Round to the nearest dollar.) E
1b. A machine was purchased 4 years ago for $50,000. The depreciation amount each year was $10,000. The firm that owns the machine no longer has a need for it, but a buyer is now willing to pay $60,000 for it because machines of this type are no longer available. What will be the gain (or loss) on this transaction? Edit Format Table