An asset was bought for Php 15,500,000 8 years ago, with an expected lifetime fo 12 years. If Declining balance method is applied, what is the book value of the asset if it has a salvage value equivalent to 5% of its initial investment cost? OP 1,997,581.32 OP 1.339,632.65

An asset was bought for Php 15,500,000 8 years ago, with an expected lifetime fo 12 years. If Declining balance method is applied, what is the book value of the asset if it has a salvage value equivalent to 5% of its initial investment cost? OP 1,997,581.32 OP 1.339,632.65

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: An asset with a purchase price of $486,966 falls in the 5-year MACRS asset class. The asset will be…

A: The book value is calculated as the cumulative depreciation over 3 years multiplied by asset cost

Q: A certain equipment costs P 250,000, lasts 10 years with a salvage value of P25.000. Money is worth…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: of equipm S = 120,00 ies is estin ve AW

A: Given first cost of $165,000, market (salvage) value described S = 120,000 – 23,000k, AOC = 60,000 +…

Q: a. straight line method depreciation charge: Php 6650 book value: Php 3350 b. sinking fund method at…

A: Depreciation is the reduction in the value of asset due to normal wear and tear Effluxion of time.…

Q: Amachine whose cost is 80.000 nyals and s value as scrap is 5,000 ryals and its useful ife is 5…

A: Calculation of depreciation using the Double Declining Balance method: Year Depreciation…

Q: Consider the following information: Initial cost of equipment $108,000 Sales tax and delivery costs…

A: Step 1: Computation of net present value of equipment is as under: Formula table:Thus, NPV of the…

Q: An asset has a first cost of $12,000, an annual operating cost of $3500 and a salvage value of $5000…

A: Given information: Initial cost=$12,000 Annual cost=$3500 Salvage value=$5000 Life=7 years Interest…

Q: 20. Consider that the following project requires an investment of $7,500 at time =0 and it has the…

A: To determine the optimal economic life of the project, we need to calculate the net present value…

Q: The exit price of an asset is RO 10,000 and the cost of disposal of the asset is RO 150. The asset…

A: Net realizable value is defined as estimated selling price less cost of disposal.

Q: The expected average rate of return for a proposed investment of $652,000 in a fixed asset, with a…

A: Proposed investment = $652,000 in a fixed asset, Useful life = 4 years, straight-line depreciation,…

Q: See image for MACRS table 1) What is the Ending Book Value at the end of year 3 using MACRS: $ 2)…

A: Calculate the Book value at the end of year 3 and after-tax salvage value as follows:

Q: A company is considering two alternatives with regards to equipment which it needs. The alternatives…

A: In this question, we have to calculate the number of days per year for which Alternative A should be…

Q: Compute the book value of an asset with FC of ₱4 500 000 after 7th year if it has useful life of 13…

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

Q: The expected average rate of return for a proposed investment of $649,000 in a fixed asset with a…

A: Average rate of return = Average net profit / Average investment

Q: Given the following information and assuming straight-line depreciation to zero, what is the IRR of…

A: IRR is the financial break even point where the return from a project is equal to the cost of…

Q: Compare the alternatives below on the basis of their capitalized costs with adjustments made for…

A: Capitalized cost Capitalized cost refers to expenses that are summed to the cost basis of a fixed…

Q: years and a t for the firs 201

A: On a financial statement, a capitalised cost is an item that is added to the cost base of a fixed…

Q: An asset cost $200,000. It has a salvage value of $40,000. It has a 10 year life. What would be…

A: Annual Depreciation under Straight-Line Method = (Cost - Salvage Value) / Useful Life

Q: he following present value factors are provided for use in this problen f $1 at 8% Present Value of…

A: (NPV) is a financial metric used to evaluate an investment project's profitability in capital…

Q: NUBD Co. purchased a new machine on January 1, 2021 for P350,000. The machine is expected to have a…

A: Here, Initial Investment in Machinery is P 350,000 Useful life of machinery(n) is 8 years PV of…

Q: Compute the book value of an asset with FC of ₱4 500 000 after 7th year if it has useful life of 13…

A: Here, Cost of Asset is P4,500,000 Useful Life is 13 Years Depreciation Rate is 7% Depreciation…

Q: From the given values below, which machine should be selected using (a) Present worth Method and (b)…

A: Present Worth: It is the present value of the annual cash flows and the cost of the project…

Q: The company has a target return on capital of 15% and a corporate tax rate is 40%. You are required…

A: Net present value method is a method of appraising potential investment projects. In this method,…

Q: The following table summarizes the financial data for a proposed new asset. The issue is how long…

Q: An asset costs R6 300,000 with a R900,000 salvage value at the end of its ten-year life. If annual…

A: Payback period is one of the simple method of capital budegting techniques and it is the time…

Q: Two alternatives are being considered for installation. Which should be selected based on an…

A: Under Capital budgeting decision, when the life of alternative projects is not same, equivalent…

Q: Merrill Corporation has the following information available about a potential capital investment:…

A: Workings in Excel:Final values:

Q: A P1, 500, 000.00 equipment has an estimated life of 20 years with a book value of P 250, 000.00 at…

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: Given the following data of equipment A and B. B A P 50 000 P 150 000 2000 First Cost Salvage Value…

A: Rate of return shows the net return that is the gain or loss over a specified time frame of an asset…

Q: A piece of equipment has a first cost of $75000, a maximum useful life of 4 years, and a market…

A: Please see the next step for the solution

Q: Determine the capitalized cost of an alternative that has a first cost of $55,000 an annual…

A: Calculation of Capitalized cost 1. Total present value of cost= Initial investment + annual expense…

Q: Alternative X has a first cost of $30,000, an operating cost of $9,000 per year, and a $5,000…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: A firm is considering an investment in new equipment that has the following information. Purchase…

A: Depreciation under Straight Line Method = (Purchase Cost - Salvage Value) / Useful Life Purchase…

Q: A piece of equipment has a first cost of $75000, a maximum useful life of 4 years, and a market…

A: SOLUTION- GIVEN, COST = $75000 USEFUL LIFE =4 YEARS INTEREST RATE = 9 %

Question

An asset was bought for Php 15,500,000 8 years ago, with an expected
lifetime fo 12 years. If Declining balance method is applied, what is the
book value of the asset if it has a salvage value equivalent to 5% of its initial
investment cost?
OP 1,997,581.32
OP 1.339,632.65
OP 2,103,673.65
P 2,209,221.91

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: Introduction

VIEW

Step 2: Calculating the required part.

VIEW

Solution

VIEW

Step by step

Solved in 3 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

Help please The following details relate to a particular asset Future Cash flows (per annum) 90,000 Expected period of cash flows 3 years Discount Rate 10% Open market price of asset 210,000 Cost of asset 630,000 Accumulated depreciation 450,000 Calculate both : a)determine the recoverable amount for this asset b)Determine whether the asset is impaired
I need the answer quickly
Provide step by step manual solution, given, and depreciation table for below mentioned problem. Make sure yet that your answer is the same as the given answer before sending your solution. An asset costing P50,000 has a life expectancy of 6 years and an estimated salvage value of P8,000. Calculate the depreciation charge at the end of the fourth period using fixed-percentage method. Answer. P5,263.87
with diagram thank you
Can you help me solve this?
A chemical plant worth P 110M has an estimated life of 6 years and a projected scrap value of P 10M. after 3 years of operation an explosion made it a total loss. How much money would have to be raised to put up a new plant costing P 150M, if depreciation reserved had been maintained during its 3 years of operation by SYD Method? Select one: a. P 82.4M b. P 78.6M c. P 100M d. P 92.8M
XYZ company has A piece of new equipment will cost $70,000. The equipment will provide a cost savings of $15,000 per year for ten years, after which it will have a $3,000 salvage value. If the required rate of return is 14%, the equipment's net present value is: a. (8240) b. None of answers are correct c. 9050 d. 23888
how would i solve this problem
An asset cost $200,000. It has a salvage value of $40,000. It has a 10 year life. What is its depreciation expense if the company uses straight-line depreciation? Group of answer choices $200,000 $160,000 $20,000 $16,000
at a cost of P depreciation nearest peso.) scrap or at the end of its useful life? a 12.75 million with an useful life of twenty years. What is the estimated
An equipment cost P67,000 and has a life of 10 years and salvage value of P53,500. Determine its book value at the end of 8 years by Declining Balance Method. a. 55,962.61 b. 56,731.35 c. 54, 659.05 d. 55, 694.35 PROVE THAT OPTION A IS THE ANSWER
The following table summarizes the financial data for a proposed new asset. The issue is how long the asset should be kept. Assume an interest rate of 12% and delermine the economic service life of the anset. End of YearN) Investment cost O&M Cost Salvage value $14,000 $3.400 $8.000 $4600 $6.000 $5.800 $4,000 01 year O2 years 3 years O Not enough information