KM Builders Co purchases a new excavator costing £50,000. Its expected useful life is ten years, at which point it is anticipated that theexcavator will have a residual value of £18,000. If the straight-line method of depreciation is used, what is the carrying amount of theexcavator at the end of 4 years?O A. £32,000O B. £48,000OC. £50,000OD. £37,200

The objective of the question is to calculate the carrying amount of the excavator at the end of 4…

Answered: KM Builders Co purchases a new…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section9.A: Depreciation

Problem 1P

See similar textbooks

Similar questions

JK Builders Co purchases a new excavator costing £40,000. Its expected useful life is ten years, at which point it is anticipated that the excavator will have a residual value of £6,000. If the straight-line method of depreciation is used, what is the carrying amount of the excavator at the end of four years? O A. £29,800 B. £26,400 O C. £13,600 O D. £24,000
PS Builders Co purchases a new excavator costing £48,000. Its expected useful life is ten years, at which point it is anticipated that the excavator will have a residual value of £9450. If the reducing-balance method of depreciation is used, applying an annual depreciation rate of 15%, what is the annual depreciation charge in Year 2? O A. £4,000 B. £6,120 O C. £4,400 O D. £5,610
A piece of machinery costs P50,000 and has an anticipated P8,000 salvage value at the end of its six-year depreciable life. What is its depreciated value at the end of 4 years? Use sum-of-years digits depreciation.
A crane costs P700,000 and whose salvage value is P50,000 after 10 years. A. Find the rate (%) of depreciation using Matheson’s Formula
An equipment costing P1.8M has a salvage value of P300,000 after 5 years. Calculate the depreciation value (book value) at the end of 3 years using the straight-line method. A. P860,000 B. P750,000 C. P900,000 D. P700,000
ECONOMICS
An asset which has a first cost of RM 40,000 is expected to have an annual operating cost of RM 15,000 per year. It will provide the needed service for a maximum of 6 years. If the salvage value changes as shown below , determine the economic life of the asset at 20 % per year.
The price of a system of jockey pumps is P5,500,000. PLM decided to purchase this system and spent P215,500 for shipping and installation. The equipment will last for 10 years with a salvage value of 3% of its total cost. Determine the following: a. Yearly charge of depreciation using SL method. b. Depreciation charge on the 6 th year, and book value at the end of 8th year using SYD method.
Meta Ltd purchased a new equipment costing £100,000. Its expected useful life is 5 years, at which point it is anticipated that the machine will have a residual value of £14,000. Applying the reducing-balance method of depreciation at 32.5% per annum, how much is the annual depreciation charge in Year 2?
Xavier Co. wants to purchase a machine for $37,400 with a four-year life and a $1,100 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $12,400 in each of the four years. What is the machine's net present value? Periods Present Valueof $1 at 8% Present Value of anAnnuity of $1 at 8% 1 0.9259 0.9259 2 0.8573 1.7833 3 0.7938 2.5771 4 0.7350 3.3121
A machine costs P 7,350, has a life of 8 years and has a salvage value of P 350 at the end of 8 years. In how many years from now when you can sell the machine at P 2,294.44 if depreciation used is SYD Method?
1. A machine has a first cost of P 600,000.00 and a salvage value of P 60,000.00 at the end of useful life of 5 years. If the depreciation cost on the 3rd year is P 88, 151.00. What depreciation method is used? 2. A man borrowed P 150,000.00 at 7% compounded monthly. If he is required to pay 10,000.00 on the 1s day of every month. How many years will it take to pay his obligation? 3. P 200,000.00 was deposited earning at 8% compounded quarterly for "x" years. If the compound amount is now P 315,379.85. Calculate the value of "x".

SEE MORE QUESTIONS

Recommended textbooks for you

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS