A company purchased a machine at £200,000 and sold it after 12 years of use for £40,000. If the cost of capital is 10%, what is the amount by which the asset has to be amortised (written-off) after the first year of asset use when the sinking fund method of depreciation is applied? Question 14Answer a. £1,125 b. £2,525 c. £7,488 d. £2,835

A P1, 500, 000.00 equipment has an estimated life of 20 years with a book value of P 250, 000.00 at the end of the period. What is the depreciation charge and its book value after 10 years using the sinking fund method?  i= 8%   Given: Required: Solution: refer to this textbook: https://drive.google.com/file/d/16J6M6RHBZ22NDaog_9DSXMgYb4qFu7T3/view?usp=sharing

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). The depreciation and book value for period 2 (using the sum-of-the-years-digits method).

1. Determine the capitalized cost of a small public market if the structure has a first cost of P20M, a life of 20 years and a salvage value of P750,000. The annual operating cost is P150,000. Taxes to be paid is P70,000 annually. Use an interest rate of 7.5%. 2. The maintenance cost of equipment is P15,000 per year and its capitalized cost at 6% interest is P1.8M. IF the equipment has a salvage value of P30,000 and has to be renewed at cost after 10 years, find its original cost. 3. A company uses a type of truck that costs P2M, with a life of three years and a final salvage value of P320,000. How much could the company afford to pay for another type of truck for the same purpose, whose life is four years with a final salvage value of P400,000, if money is worth 4%?

The goodwill of Blue Devil Inc. is $1,200,000. What’s the amortization expense per year? Group of answer choices $100,000 Do not do amortization $1,200,000 $1

A company has purchased a machine (CCA rate 24%) at $300,000 and has a tax rate of 33.00%. By how much will the NPV change if the company is able to obtain a $13,000 salvage value for its machine at the end of the project's life in Year 4? Assume a discount rate of 11.20% and that all else remains the same. Question 10Answer a. $8,502 b. $10,415 c. -$1,913 d. $6,589 e. $10,075

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 5 120,000

Capitalized Cost 1.Find the capitalized cost of an asset whose cost is P100,000, salvage value is P10,000, life is 15 years at 5%. 2.A bridge that was constructed at a cost of P75,000 is expected to last 30 years, at the end of which time its renewal cost will be P40,000. Annual repairs and maintenance are P3,000. What is the capitalized cost of the bridge at an interest of 6%?

Consider the following facts and do not consider the effect of income taxes: Initial cost of equipment Estimated life Salvage value Annual cash inflows Estimated cost of capital $45,000 5 years $5,000 $63,300. O $14,890. $59,895. O $18,319. $15,000 The net present value of the equipment is: 8%

CMM Company was constructed at a first cost of P8M and with estimated salvage value of X at the end of 25 years. Find the value of X using sinking fund if the book value amounted to P5,480,093.88 at the end of 15 years with an interest rate of 10% annually. a. P300,000 b. P400,000 c. P500,000 d. None of the above