straight-line method
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An asset was acquired on January 1, 2020 for P800,000 and is expected to have a 5-year useful life. The straight-line method was used. On January 1, 2022, the asset was deemed to have a sound value of P720,000.
How much is the revaluation surplus for the period ended December 31, 2022?
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- A piece of equipment has an initial cost of $5,000 in year 1. The maintenance cost is $300/yr. for the total lifetime of seven years. During years 1-3, the rate of inflation is 5% and the effective annual rate of interest is 9%. What is the uninflated present worth of the equipment during year 1?Required:An asset that you hold has a value at the start of the year of 200. After six months it has increased invalue to 600, and after another six months has fallen in value back to 200.Required:Please calculate the annualised arithmetic return and the annualised geometric return of this asset.Redstock Plc had acquired a machine on 1 January 2019 at a cost of £100,000 with an estimated useful economic life of ten years. The fair value of the machine is £52,000 and the selling costs are £4,000. The expected future cash flows are £10,000 per annum for the next five years. The current cost of capital is 10%. An annuity factor for this rate over this period is 3.791. Required: Prepare extracts from the financial statement for the year-ended 31 December 2019. Show all your workings.
- On 31 December 2013, the fair value of the asset less costs to sell was OMR 50,000 and the expected fu for the next five years. The current cost of capital is 10% and a five-year annuity of OMR 1 per annum at 3-79. What is the present value of future cash flow of the asset? O a. OMR 45,000. O b. OMR 50,000. O c. OMR 37,900.On October 1, 2022, Abbott Inc. purchased equipment costing $700,000 by paying $150,000 cash and signing a $550,000, 10%, 1-year note for the remainder. The face value of the note plus interest is due when the note matures in one year. The equipment will be used in a variety of R&D activities. It is expected to have a useful life of 5-years and a residual value of $20,000. Abbott uses the DDB method for the equipment. Required: In the journal below, record the equipment purchase on October 1, and record depreciation and accrued interest for 2022. Round all calculations to the nearest whole month and whole dollar.If the replacement cost of the machine on 31st December 2019 was OMR 70,000 and on 31st December 2020 was OMR 100,000, then how much will be the amount of depreciation under CCA at 20% rate of depreciation on 31st December 2020. a. OMR 10,000 b. OMR 3,000 c. OMR 14,000 d. OMR 17,000
- if an asset costs $s0600 and is expected to have a $4900 salvage value at the end of its 9-year life, and generates annual net cash inflows of $9200 each year, the cash payback period is O6.0 years. O5.5 years O5.0 years. O9.0 yearsA piece of equipment has a first cost of $75000, a maximum useful life of 4 years, and a market (salvage) value described by the relation Sk = 60000 – 10500k, where k is the number of years since it was purchased. The AOC series is estimated using AOC = 30000 + 4500k. The interest rate is 9% per year. When should the company replace this asset?Vilma Company has estimated that total depreciation expense for the yearended December 31, 2020 will amount to P250,000. As of the beginningof the year, the company had fixed assets amounting to P2,000,000 andacquired additional fixed assets of P1,000,000 on July 1, 2020. Theestimated useful life is for 10 years. The 2020 year-end bonuses toemployees will total P600,000. In Vilma’s interim income statement for thesix months ended June 30, 2020, what total amount of expense relating tothese two items should be reported?
- A property that produces a first year NOI of $18,000 is purchased for $135,000. The NOI is expected to increase by 7% in the fourth year when some of the leases turnover. The resale price in year 8 is expected to be $149,000. What is the net present value of the property based on the 8-year holding period and a discount rate of 12%? Answer: NPV = $17,829 How do you set this up in excel?On January 1, 2020, QuickAir Transportation Company purchased a used aircraft at a cost of $64,400,000. QuickAir expects the plane to remain useful for five years (7,000,000 miles) and to have a residual value of $6,400,000. QuickAir expects to fly the plane 925,000 miles the first year, 1,225,000 miles each year during the second, third, and fourth years, and 2,400,000 miles the last year. Read the requirements. 1. Compute QuickAir's depreciation for the first two years on the plane using the straight-line method, the units-of-production method, and the double-declining balance method. a. Straight-line method Using the straight-line method, depreciation is for 2020 and for 2021.On January 1, 2018, Spring Co. purchased a land for $12,000,000. Thecompany expected to extract 2,000,000 tons of mine from this land overthe next 20 years at which time, the residual value of the asset shall bezero. During 2018 and 2019 operations, 60,000 tons were mined each yearand sold for P80 per ton. The estimate of the remaining lifetime capacityof the mine was raised to 2,400,000 tons at the start of 2020 and theresidual value was to be $960,000. How much should be recognized asdepletion in 2020 if the total production for 2020 is 100,000 tons?
