plastic manufacturing company produes o product prom polystyrene. Two mi xing processes, batchand conti nu ousare avail able with The folloning datafor eachprocess:BatchContinu ousIni ti al costp 50000 .00p 100,000 · 00Maintenance cort lyearP 10r0 00 -00१ ३५।०००.००Salvaye valueP Cec 000. 06p 12, 000 . 00Life time6 years5yearsCapauty (uni t3/ year)1,000, 0002,000, 000The compamy uses straight-line depre cianion pays 48°% of its net income as income tox, and has anafter - tax mini mun ot ractive rate of return of I50 %. The company has an infinite market and cansell all of the products it produces at po.50 per unit.which ot he gioen comparahve figures give he closes evaluation for the beart in vestment ?PW and FW me Thod *Note show your solution in

Present Value - Given a certain rate of return, present value (PV) is the current value of a future…

fic manufacturing company produces a product from polystyrene. Two mix nuous are available with The following data for each process: Batch f50000.00 Initial cost Maintenance cost /year P 36.000.00 Salvage Value p 12,000.00 Life time 5 years Capacity (units/year) 2.000, 000 -my uses straight-line depreciation, pays 48% of its net income as P 10.000.00 PG.000- 06 Continuous 6 years 1,000,000 P 100,000 00

fic manufacturing company produces a product from polystyrene. Two mix nuous are available with The following data for each process: Batch f50000.00 Initial cost Maintenance cost /year P 36.000.00 Salvage Value p 12,000.00 Life time 5 years Capacity (units/year) 2.000, 000 -my uses straight-line depreciation, pays 48% of its net income as P 10.000.00 PG.000- 06 Continuous 6 years 1,000,000 P 100,000 00

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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m/ilrn/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSession Locator-assign... eBook Show Me How A ✩ Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $112,500. The equipment was expected to have a useful life of 3 years, or 22,500 operating hours, and a residual value of $4,500. The equipment was used for 9,000 hours during Year 1, 6,750 hours in Year 2, and 6,750 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the 3 years ending December 31, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the 3 years by each method. Do not round intermediate calculations when determining the depreciation rate. Round the final answers for each year to the nearest whole dollar. Year Year 1 Year 2 Year 3 Total Straight-Line Method Depreciation Expense Units-of-Activity Method 2. What…
Banko Incorporated manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Purchase price Delivery cost Installation charge Estimated life Estimated units $ 54,800 $ 6,000 $ 4,000 5 years 152,000 $ 4,000 Salvage estimate During Year 1, the machine produced 48,000 units, and during Year 2 it produced 50,000 units. Required: a. Determine the amount of depreciation expense for Year 1 and Year 2 using straight-line method. b. Determine the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance method. c. Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method. d. Determine the amount of depreciation expense for Year 1 and Year 2 using MACRS, assuming that the machine is classified as seven-year property. Note: Round your answers to the nearest dollar amount. MACRS table: 5-Year Year property, 7-Year property, 12345678 20.00 14.29 32.00 24.49 19.20 17.49 11.52 12.49…
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Pharoah Company purchased for $4,543,000 a mine that is estimated to have 45,430,000 tons of ore and no salvage value. In the first year, 14,040,000 tons of ore are extracted. (a1) Calculate depletion cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depletion cost per unit $ per ton Save for Later (a2) The parts of this question must be completed in order. This part will be available when you complete the part above.
MNVK Corp. purchased a computer system at a cost of $140,000 on January 1, 20X1. The estimated useful life is 10 years, and the estimated residual value is $10,000. Assuming MNVK uses the double-declining-balance method, what is the depreciation expense for 20X2? Select one: a. $22,800 b. $28,000 c. $26,000 d. $22,400 e. $20,800
Q2: The costs occurred in March has been allocated to each cost center. The cost of machines is 3.950.000 TL and the accumulated depreciation of machines is 1.927.700 TL. The useful life of machine is 10 years and Declining Balance Method is chosen. The depreciation cost of machines will be allocated on the base of machine hours. The allocated cost of service cost centers will be re-distributed according to Step Ladder Method. First apportioned center will be chosen according to total cost. Infirmary and Cafeteria will be allocated on the base of number of workers, Generator on the base of kwh and Maintenance and Repair on the base of maintenance and repoir hour. The allocation keys of each item are as follows: Cost Production Departments Service Departments Centers/Costs Pasta Cutting Drying Maintenance Total Gristmill Generator Infirmary Cafeteria & Repair Press 17.000 Cost Direct Material 25.000 18.000 60.000 Direct Labor 36.000 27.000 17.000 80.000 Factory Overhead Indirect 3.000…
AUBURN CAR WASH Cost of new car wash machines: $800,000 Estimated residual value: $50,000 Machine life in years:5 Machine life in hours: 10,000 Actual use per year: Year Hours used 1 2,000 2 1,800 3 2,200 4 2,100 5 1,900 Use the information on the Given Data worksheet to prepare three depreciation schedules using the following methods: straight-line, double - declining balance, and activity - based. Auburn Car Wash Straight Line If you hover your mouse over a cell with a red flag you will see the comment Auburn Car Wash Double - Declining - Balance If you hover your mouse over a cell with a red flag you will see the comment Note: for year 5 you must make the year end book value equal to the Residual Value Therefore you will need to take the beginning book value less the Residual Value Auburn Car Wash Activity - Based When you have completed all three schedules answer the following question. What do you observe about the Book Value at the end of the 5th year for all three methods? Type…
Complete the following table given this information: (Do not round intermediate calculations.) Cost of machine $ 89,200 Residual value $ 3,200 Useful life 5 years Estimated units machine will produce 100,000 Actual production: Year 1 Year 2 52,000 12,500 Use MACRS table. Depreciation Expense Method Year 1 Year 2 Straight line $17,200 $17,200 Units of production Declining balance MACRS (5-year class)
MANAGERIAL ACCOUNTING (You may use excel. RATE will be given. No long explanation needed) Show in tabular form (depreciation schedule) the computation for the depreciation expenses, accumulated depreciation, and book value per year for a machine worth Php 1,000,000 with a salvage value of 10% of the original cost and a depreciable life of 5 years using: a. straight-line method b. sum of year's digits method
Two types of machine tools are available for performing a particular job in a certain manufacturing firm. The estimated costs and salvage values are sum marized in the following table. Machine A Machine B $30,000 $3,000 6 years $6,000 MACRS (GDS) (Straight-line method) 5 years $40,000 $2,500 8 years $4,000 MACRS (GDS) First cost O&M costs/year Service life Salvage value Depreciation method Recovery period 5 years The effective state and federal tax rate is 50%, and the capital-gains rate is 35%. Make your comparison after income taxes, using a MARR of 10% and in- dicate the study period.