Q.6 An asset will cost $20 000 when purchased this year. It is further expected to have a salvage value of $2 000 at the end of its five year depreciable life. Determine: The depreciation and the book value for period 2 (using Straight Line) The depreciation and book value for period 4 (using the sinking fund method) with an interest rate of 10%, compounded annually. The depreciation and the book value for period 3 (using the declining balance method) by assuming 0.2 for (d).

Q.6 An asset will cost $20 000 when purchased this year. It is further expected to have a salvage value of $2 000 at the end of its five year depreciable life. Determine: The depreciation and the book value for period 2 (using Straight Line) The depreciation and book value for period 4 (using the sinking fund method) with an interest rate of 10%, compounded annually. The depreciation and the book value for period 3 (using the declining balance method) by assuming 0.2 for (d).

Name: Q.6An asset will cost $20 000 when purchased this year. It is further
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Q.6An asset will cost $20 000 when purchased this year. It is further expected to have a salvage value of $2 000 at the endof its five year depreciable life. Determine:The depreciation and the book value for period 2 (using Straight Line)The depreci

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The constant percentage method will be used to depreciation a machine with an initial cost of P 1.2 million pesos and life of 12 years. What must be the minimal salvage value such that it's book value after five years does not fall below P240000
CAPITALIZED COST 1. Compute the capitalized cost of a new car worth P800,000.00 if it is estimated that it requires P20,000.00 per year to maintain and must be replaced at the same amount with a salvage value of P300,000.00 after 5 years if the interest rate is 12% per annum.
1
The alternatives shown on the basis of their capitalized costs using an interest rate of 10% per year. What is the capitalize cost for machine A. Machine A Machine B First cost, SR -100,00 -800,000 Annual Operation Cost, SR/ year Salvage value, SR Life (years) -70,000 -12,000 8000 1,000,000 $850,996 -$920,000 -$900,550 $950,696 O O O O
Please answer this question correctly and explain propperly. Thank you so much!
A3) Finance A property can be purchased in cash or through an equivalent plan, over 20 years, consisting of equal monthly payments (before monetary correction), at the effective rate of 8.60% per year. Monetary correction is made monthly, using the reference rate (RT). Throughout this period, the monthly average RT was 0.60%. Knowing that the twentieth installment was $2170 (after monetary correction), obtain the cash value of the property.
A firm is considering an investment in new equipment that has the following information. Purchase Cost: $132,793 Salvage Value in five years time: $18,337 Useful life is 5 years and depreciation is determined using the straightline method. Expected increased annual cash flows are $52,651 What is the payback period in years? Calculate to 2 decimal places
A Property is expected to have 5 Year NOI flow of $10,000, $12,000, $15,000, $18,000, and $10,000 and a final (year 5) sale price of $90,000. Using capitalization rate of 12% what is the estimated market value of the property? 97,354 104,664 87,641 100,919 90,724
Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 10% per year and a study period of 10 years. Alternative C First Cost $-40,000 $-11,000 $-24,000 AOC, per Year Annual Increase in Operating Cost, per Year Salvage Value Life, Years $-2,000 $-200 $-500 $6,000 $200 10 The present worth of alternative C is $ and that of alternative D is $ (Click to select) voffers the lower present worth.
DRAW CASH FLOW DIAGRAM A manufacturing plant installed a new boiler at a cost of P150, 000 and estimated to have a useful life of 10 years. It is estimated to have a scrap value at the end of the useful life of P5, 000. If the interest is 10% compounded annually, determine the capitalized cost.
A plant erected to manufacture sock has a first cost of P10,000,000.00 with an estimated salvage value of P1000,000.00 at the end of 25years. Find its appraised value to the nearest P100 by the sinking fund method assuming an interest rate of 6% at the end of 10 years and 20years.
Determine the payback period (in years, round-off to 3 decimal places) at an interest rate of 7% per year for an asset that initially cost S30,000 , has a scrap value of $1700 whenever it in sold, and generates cash flow of 3,100 per year