revaluation surplus,
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A: The Answer :
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- A company is evaluating an investment. The company uses the straight-line method of depreciation. Use the following information to compute the accounting rate of return. Show your calculations and round to one decimal place. Project Investment SR875,000 Residual value 0 Operating income: Year 1 120,000 Year 2 120,000 Year 3 120,000 Year 4 120,000 Year 5 120,000onsider the following data on an asset:Cost of the asset, I $235,000Useful life, N 5 yearsSalvage value, S $ 60,000Compute the annual depreciation allowances and theresulting book values, using(a) The straight-line depreciation method.(b) The double-declining-balance methodConsider the following data on an asset:Cost of the asset, I $38.000Useful life. N 6 yearsSalvage value. S $0Compute the annual depreciation allowances and the resulting book values by using the DOB method and then switching to the SL method.
- Investment Property: Subsequent Measurement: A building is accounted as Investment Property. It has a cost of P5,000,000, useful life of 15 years and an estimated residual value of P500,000. It had fair values as follows: Year end Fair Value 1 P4,200,000 2 P4,800,000 If the entity used the cost model, compute for the following: a. Annual Depreciation Expense b. Carrying value as of the end of Year 1 c. Carrying value as of the end of Year 2 If the entity used the fair value model, compute for the following: d. Gain/(Loss) from change in fair value – Year 1 e. Gain/(Loss) from change in fair value – Year 2 f. Carrying value as of the end of Year 2Assume the following PPE: Cost Residual Value Est. Useful Life (years) Building 10,000,000 500,000 20 Machinery 5,000,000 200,000 10 Delivery Equipment 2,000,000 200,000 5 Office Equipment 400,000 - 5 14. Using composite method, compute the composite life in years. Round off to two decimal places. Ex: 12.3415. Compute the composite depreciation rate. Round off to two decimal places. Ex.:12.34%16. How much is the annual depreciation as per table?17. Give the entry to record sale of delivery equipment at the end of the 4th year for P70,000.18. How much is the depreciation for the 5th year? (Use the rounded off rate)19. How much is the depreciation for the 5th year assuming a new delivery equipment is purchased for P2,200,000 at the beginning of the 5th year? (Use the rounded off rate) NOTE: SUBPARTS 17-19 ONLYAssume the following PPE: Cost Residual Value Est. Useful Life (years) Building 10,000,000 500,000 20 Machinery 5,000,000 200,000 10 Delivery Equipment 2,000,000 200,000 5 Office Equipment 400,000 - 5 14. Using composite method, compute the composite life in years. Round off to two decimal places. Ex: 12.3415. Compute the composite depreciation rate. Round off to two decimal places. Ex.:12.34%16. How much is the annual depreciation as per table?17. Give the entry to record sale of delivery equipment at the end of the 4th year for P70,000.18. How much is the depreciation for the 5th year? (Use the rounded off rate)19. How much is the depreciation for the 5th year assuming a new delivery equipment is purchased for P2,200,000 at the beginning of the 5th year? (Use the rounded off rate)
- You are considering an investment proj ect with the following financialin formation:(a) Required investment = $500,000(b) Project life= 5 years(c) Salvage value= $50,000(d) Depreciation method = s traight-line depreciation (no ha lf-year convention)(e) Unit price = $40(f) Unit variable cost = $18(g) Fixed annual cost = $230.000(h) Annual sales volume= I 00,000 units(i) Tax rate = 35%G) MARR = 15%Suppose the company is most concerned about the impact of its price estimate on the projects rate of return. How would you address this concernSUBJECT: ENGINEERING ECONOMYTOPIC: DEPRECIATION SHOW THE COMPLETE AND DETAILED SOLUTION OF THIS PROBLEM. THANK YOU EXPERTS. E) Determine the rate of depreciation, the total depreciation up to the end of the 8th year and the book value at the end of 8 years for an asset that costs P150,000 when new and has an estimated scrap value of P20,000 at the end of 10 years using the double declining balance method.Alternative Methods I and II are proposed for a security operation. The following is comparative information: Determine which is the better alternative based on an after-tax annual cost analysis with an effective income tax rate of 40% and an after-tax MARR of 15%, assuming the following methods of depreciation: Solve, a. SL b. MACRS.
- Assuming modified accelerated cost-recovery-system depreciation and an economic life of five years, what is the book value after three years of an asset of initial cost P? OA. 0.288P OB. 0.422P OC. 0.808P OD. 0.852PGiven the following information and assuming straight-line depreciation to zero, what is the IRR of this project? Initial investment = $400,000; life = four years; cost savings = $125,000 per year; salvage value = $20,000 in year 5; tax rate = 34%; discount rate = 12%.Multiple Choice7.51%9.43%10.24%6.25%8.15%The amount of the estimated average annual income for a proposed investment of $73,000 in a fixed asset, giving effect to depreciation (straight-line method), with a useful life of 4 years, no residual value, and an expected total income yield of $34,200, is a.$2,300 b.$8,550 c.$18,250 d.$34,200