first cost of Php10,000,000 with an estimated salvage value of Php100,000 at the end of 25 years. Find its appraisal value to nearest Php100 by the sinking fund method, assuming an interest rate of 6% at the end of 10 ye

first cost of Php10,000,000 with an estimated salvage value of Php100,000 at the end of 25 years. Find its appraisal value to nearest Php100 by the sinking fund method, assuming an interest rate of 6% at the end of 10 ye

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: Do you think that a Managerial Accountant, responsible for manufacturing operations, would work on…

A: A managerial accountant collects, interprets, and prepares financial data for the organization's or…

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: Determine the capitalized cost of a new engine that costs P300,000.00 and the projected useful life…

A: Capitalized cost are cost incurred on fixed assets upto the use of assets. Its includes cost of…

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

A: The asset is purchased by a firm so that it can be used in the operation of the business. Due to the…

Q: maintenance costs of this equipment are estimated to be about $25,000 per year. Salvage value is…

A: EUAC is uniform annual equivalent cost that is equivalent to all costs of equipment.

Q: The first cost of a certain machine After 8 years it will have a salvage value of P18,000.00.…

A: Depreciation is an accounting method of allocating the cost of tangible assest over useful its life…

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: A brand new car costs ₱500,000 and the salvage value is 10% of the original cost after 20 years.…

A: The straight-line depreciation method gradually reduces the value of an asset over time till it…

Q: A special purpose machine toolset costs $20,000. The toolset will be financed through a bank loan of…

A: The question is based on the calculation for benefit of buying a special purpose machine , which is…

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: costs $50000, including $5000 for installation. The machine is expected to have a useful life of…

A: Depreciation - Depreciation is an accounting technique for spreading out the expense of a tangible…

Q: ul life of 5 years and a salvage value of $5,000. The machine is expected to generate annual net…

A: Payback period is the period required to recover the initial amount of investment in the equipment.…

Q: The Manila Gas Corporation is considering the purchase of a power trench digger for laying main…

A: We will be using the break-even analysis as it will help us determine whether the project has the…

Q: A new engine was installed by a textile plant at a cost of P388,000 and projected to have a useful…

A: First cost (F) = P 388000 n = 12 years Salvage value (S) = P 37000 r = 14% compounded semiannually =…

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 machinery worth BD20,000 has a lifetime of10 years and a salvage value of Rs. 1500. Calculate the…

A: Using the sinking fund method: Accumulated Depreciation=BD 12,584.21272 Book value at the end of…

Q: A company is considering three pieces of equipment. Equipment A has a first cost of $80,000, AOC of…

A: NPV represents the amount of profitability generated by an investment and is expressed in absolute…

Q: A project has an initial requirement of $95,316 for equipment. The equipment will be depreciated to…

A: Calculation of Net Present Value:The net present value is $99,450.25.Excel Spreadsheet:

Q: A machine costs 425,000, lasts 8 years and has a salvage value at the end of life of P30,000.…

A: Note: As per our guidelines, we will solve the first three subparts. Given Machine cost (Ci) =…

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

A: Depreciation is the total loss in value of an asset over the life of the asset. The value of asset…

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: 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: 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: 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: What is the present worth of all the damages for 15 years?

A: Present Worth: It is the current worth of future annual cash flows streams or future sum of money.…

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: 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: 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: 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: A buffing machine is costs P10,000. Its estimated scrap value is P1,000 after 10 years. Solve for…

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

A: The business organizations are required to charge the depreciation expense so as to shown the assets…

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: Halcrow, Inc. hopes to replace an outdated tracking system currently installed on CNC machines. The…

A: Calculate Equivalent Annual Cost (EAC) for Different Useful LivesGiven:Initial cost of the new…

Q: An injection molding system has a first cost of $175,000 and an annual operating cost of $95,000 in…

A: ESL means maximum life of the machinery up to which machine can provides positive cashflows. ESL is…

Q: Find the periodic payment into a depreciation fund, for a filing cabinet which cost 5,400 with a…

A: solution given Cost of asset 5400 Residual value 150 Depreciable book value 5250…

Q: The cost of an equipment is P650,000 and the cost of installation is P45,000. If the salvage value…

A: a) Striaght Line Method Depreciation Cost of Equipment = P650,000 Cost of Installation = P 45,000…

Question

A plant erected to manufacture socks has a first cost of Php10,000,000 with an estimated salvage value of Php100,000 at the end of 25 years. Find its appraisal value to nearest Php100 by the sinking fund method, assuming an interest rate of 6% at the end of 10 years.

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

Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation

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

If an asset costs $65,000 and is expected to have a $5,000 salvage value at the end of its ten-year life, and generates annual net cash inflows of $5,000 each year, the cash payback period is _______________ Show solution
A company buys a solar panel unit for P105,000. The shipping and installation fees amount to P15,000. If the unit is expected to last for 15 years, with a salvage value of P3,000, what is the depreciation charge during the 12 th year, and the book value at the end of 14 years by the (c) sinking fund method given interest rate at 12.5 percent, and (d) Sum-of-the-Years Digit (SYD) Method.
A four-stroke motorbike costs P75,000.00. It will have a salvage value of P10,000.00 when worn out at the end of eight years. Determine the appraised value of the motorbike after 4 years, using the Sinking Fund Formula at 5%.
Henerhiya Co. is planning to buy a machine costing P84,000 to be depreciated on the straight-line method basis over 10 degrees years life. The related cash flow from operations, net of income taxes, is expected to be P10,000 a year for each of the first 6 years and P12,000 for the next 4 years. It was also estimated that the salvage value of the project at the end of year 1 to be P60,000 and decreases by P5,000 each year thereafter, provided further that at the end of 10 years, the machine has no salvage value. Compute the payback bailout period in years.
A Project study for the construction of an engineering building are under consideration. Based on the study the cost of the building is P6,500,000 with a life of 30 years and a salvage value of P 400,000. Yearly maintenance and repair is P 18,000. If the yield of investment is 6%, determine the future worth cost.
Pads Corp. is contemplating the purchase of a large stamping machine which will cost Php 500,000. With additional transportation and installation costs of Php 40,000 and 65,000. Its market value the end of 5 years is estimated at Php 75,000. What is the accumulated depreciation at the end of year 4 using, (a) declining balance method? (b) sum of the years method? (c) sinking fund method (9%)? Round off your answers to the nearest 2 decimal places.
(b) Suppose that a machine costing $9000.00 is to be replaced at the end of 7 years, at which time it will have a salvage value of $900.00. In order to provide money at that time for a new machine costing the same amount, a sinking fund is set up. The amount in the fund at the end of 8 years is to be the difference between the replacement cost and the salvage value. If equal payments are placed in the fund at the end of each quarter and the fund earns 8% compounded quarterly, what should each payment be?
Standard Product Cost Santa Clara Furniture Company manufactures designer home furniture. Santa Clara uses a standard cost system. The direct labor, direct materials, and factory overhead standards for an unfinished dining room table are as follows: Direct labor: standard rate $19.00 per hr. standard time per unit 3.5 hrs. Direct materials (oak): standard price $16.50 per bd. ft. standard quantity 27 bd. ft. Variable factory overhead: standard rate $3.90 per direct labor hr. Fixed factory overhead: standard rate $2.10 per direct labor hr. a. Determine the standard cost per dining room table. per dining room table Using this b. A standard cost system provides the company's management a cost control tool using the principle of principle, cost deviations from standards can be investigated and corrected.
The cost of equipment is P500,000 and the cost of installation is P30,000. If the salvage value is 10% of the cost of equipment, determine the book value at the end of the 3rd year, Solve using Sinking fund method (not straight line) at interest of 12%
Indicate whether each of the following expenditures should be classified as land, land improvements, buildings, equipment, or none of these. 1. 2. Parking lots Electricity used by a machine 3. Excavation costs 4. Interest on building construction loan 5. Cost of trial runs for machinery 6. Drainage costs 7. Cost to install a machine 8. Fences 9. Unpaid (past) property taxes assumed 10. Cost of tearing down a building when land and a building on it are purchased
A firm undertakes a five-year project that requires an initial capital investment of $125,000. The project is then expected to provide cash flow of $15,000 per year for the first two years, $55,000 in the third and fourth years, and $16,000 in the fifth year. The project has an end-of-life salvage value of $7,000.
Please answer this question correctly and explain propperly. Thank you so much!