QUESTION 3 Acompany bought a machine for £3,200. It is to be depreciated at a rate of 25% per annum, using the reducing balance method. What would be the remaining book value after two years? a.£1,800 b.£2,400 C.E1,800 3,200-(3,200x.25)+(2400x.25) d. none of the above

QUESTION 3 Acompany bought a machine for £3,200. It is to be depreciated at a rate of 25% per annum, using the reducing balance method. What would be the remaining book value after two years? a.£1,800 b.£2,400 C.E1,800 3,200-(3,200x.25)+(2400x.25) d. none of the above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Determine the value of R13 000 after it has depreciated for 3 years at 6% p.a: 1.1 on the straight…

A: Note: As per the Policy, We’ll answer the first question since the exact one wasn’t specified.…

Q: Q 5. DT Ltd. provides you the following information: 1. Purchase price of machine Rs. 1,90,000 2.…

A: Annual Depreciation charge = 190000+100005 =…

Q: A new baking machine costing $10,000 is purchased. Using a declining balance rate of 15 percent,…

A: Depreciation is the systematic allocation of cost of the asset over the useful life of asset. It…

Q: The maintenance expense on a machine is expected to be 52,000 during the first year and to increase…

A: Maintenance expense refers to the total amount of cost incurred by a business entity towards the…

Q: Question 2: Bunnings Ltd is considering to invest in one of the two following projects to buy a new…

A: Therefore, Equipment 2 should be accepted as the profitability index of Equipment 2 is higher than…

Q: QUESTION 3 Mark, Inc purchases equipment for $57320. The equipment will be depreciated over 5 years…

A: Introduction: Annual cash flows is an organization net income adjusted with any non cash item. Non…

Q: QUIZ 2: 1. On January 1, 20x1 Buckle Co. purchased a machine that had a list price of P46,320.…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: QUESTION 9 Mark, Inc purchases equipment for $54220. The equipment will be depreciated over 5 years…

A: Annual cash flow is the sum of net operating income and depreciation expenses. Because the…

Q: Question 4 dzio erit aterize of aldol sit mor A CNC machine centre costs £100,000. Its value…

A: X = 1.1 Therefore, depreciation rate is 10% Y = 2 years Cost of CNC machine = 100,000 Depreciation…

Q: Yam-Hash Corporation currently uses a water purification machine that was purchased 2 years ago.…

A: Terminal year cash flows are the amount to be recovered from project at the end of the project.

Q: Factor Company is planning to add a new product to its line. To manufacture this product, the…

A: **Since you have uploaded a question with various sub sections and not specified the sub section to…

Q: 3. Depreciation expenses is recognized as reimbursable cost by a number of payers who prospective…

A: Explanation of depreciation. Depreciation is the predicted decrease in value of a fixed asset over…

Q: Question 28 N plc purchased a machine for $18,000. The transportation costs were $1,700 and…

A: We have the following information: Cost of the machine: $18,000 Transportation cost: $1,700…

Q: Question 2) A Company is planning to buy a new machinery for 175.000 dollars. This machinery will…

Q: You are required to calculate the amount of depreciation to be charged against each financial year…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: 2-7Payback period, accounting rate of uy a new machine with special purpose 1)One million $ Dollars…

A: Given : Annual revenues from operating the machine will be $1,200,000 Annual expenses excluding…

Q: Exercise 2 (Basic Present Value Concepts) Each of the following parts is independent. (Ignore income…

A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…

Q: QNO1: Calculate the annual rate of depreciation by using straight line method for an asset having…

A: Straight line method of depreciation is that method which charges a fixed amount of the value as…

Q: QUESTION 4 A cloth dryer machine cost RM10,000 and is expected to have useful life of 7 years. It…

A: Accounting is essential to operating a company since it allows businesses to track income and…

Q: IL PROBLEM SOLVING 1. An equipment costing P250. 000 has an estimated life of 15 years with a bok…

A: Declining balance method of depreciation It is one of the depreciation method to compute annual…

Q: Problem 3: A certain machine costs P 40,000, has a life of 4 years and salvage value of P 5,000. The…

A: Formula: Depreciation per unit = ( Asset cost - Salvage value ) / Total estimated Units. Deduction…

Q: Serial Problem Business Solutions LO P1, P2 Santana Rey is considering the purchase of equipment…

A: Payback Period: The payback period is a capital budgeting method which determines the time period…

Q: QUESTION 3 Capitalized cost is an application of perpetuity. It is the sum of the first cost and the…

A: It is given that:machine cost – P 300,000 Life – 15 yrs Annual cost – P 5000 Salvage value – P…

Q: On 31 August 2018, Musk Traders purchased a machine on credit for a cost price of R402 500…

A: Depreciation: Depreciation is an accounting method which is used for allocating the cost of a…

Q: Question 2 On 31 August 2018, Musk Traders purchased a machine on credit for a cost price…

A: Accumulated depreciation refers to the aggregate depreciation of an asset up to a certain point in…

Q: Answer letter A only. Do not use Excel. Pamantasan ng Lungsod ng Maynila buys a solar panel unit…

A: Following is the answer to the given question

Q: Pamantasan ng Lungsod ng Maynila buys a solar panel unit for P105,000. The shipping and installation…

A: Sinking fund method is an accounting technique that helps to determine depreciation expense for a…

Q: QUESTION 3 A new car is priced at RM137,800. The life expectancy of the car is 14 years and the…

A: Depreciation expense is a kind of operating expense that is reported at the end of the periodic…

Q: 6) A m/c costs $10,000. It can be depreciated by DDB depreciation with B=$10,000, N=10 years, S=$0.…

A: Ordinary Gain The proceeds received on sale( disposal) of asset compared to the assets book value to…

Q: 5. A given item has a spelling price of $1,000. Its value depreciates at a rate of 12% per annum.…

A: Depreciation: The reduction in the value of an assets with wear and tear, and with the passage of…

Q: Q2/ You purchased computer equipment for $55,000 to use in your own business. You do not expect the…

A: Depreciation is the method of accounting which allocate the cost of the physical or tangible asset…

Q: How long will it take the car to be worth half its value?

A: Answer is B . 48 months Linear equation Y = mx+c Consider y is the value of car M is constant rate…

Q: 59. What is the depreciation factor per year of a hand tractor that is bought at P150, 000.00, if it…

A: Depreciation factor per year = (Purchase cost - Salvage value) ÷ Useful years. The above calculation…

Q: Q1) A piece of machinery costs $5,000 and its useful life is five year. Compute the schedule of…

A: Ans. Sum of years digits method of depreciation takes into account the remaining life of machine.

Q: 1.1 12 13 14 A mine buys mining machinery that costs R3.6 million. It depreciates at a rate of 12.5%…

A: 1.1

Q: 4. A machine is bought for OMR 15,000 which is expected to be useful for 4 years. The company also…

A: Working: Calculation of depreciation - Depreciation = (Purchase price - Salvage value) / Useful life…

Q: Q2. Tulsian Ltd. provides you the following information : Purchase Price of each Machine 1. Rs.…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: QUESTION 1 A S year old machine is assumed to have depreciated annually at a rate of 4.3% and its…

A: The value which shows the current valuation for the future amount is called the present value. The…

Q: Example nple (1):- If the original value of the machine is 25000$ and it is 5 year old, what the…

A: Example 1 If the original value of the machine is 25000$ and it is 5 years old with no recovery…

Q: (LG 2.6) An asset costs $14 000. At a depreciation rate of 20 percent, calculate its book value…

A: Methods of charging depreciation includes: Straight-line method Sum of Years digit methods Double…

Q: 29. X Corporation is considering buying a $25,000 machine. Its estimated useful life is 5 years,…

A: Rate of return on average investment = Average profit/Average investment Average profit =…

Q: manufacturing firm contemplates retiring an existing machine at the end of 1982. The new machine to…

A: Given, r = 5% Amount needed by end of 1982 = Cost - Scrap Value =10,000 - 750 = 9,250 Value of…

Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

25 A machine costs R20 000. Depreciation will be written off at 20% per annum. Which one of the following amounts shows its carrying amount after 4 years if the reducing balance method is used? A. R9 030 B. R8 192 C. R8 256 D. R8 524
2. It is rëquired to select one of the three machines. Which machine should be selected, based on the present worth comparison at an interest rate of 12% per year, if the costs are shown below? Туре X 7,650 1,200 Туре Y 12,900 900 2,000 Туре Z 17,000 750 First cost, $ Maintenance cost,.( $ lyear) Salvage value, ( $) Economic (years) 4,000 12 4
5 A machine that was purchased for €2, 500 has an estimated useful life of 8 years and a trade-in value of €500. Find the annual depreciation charges using the sinking fund met hod and assuming that the effective rate of interest is 4%. What is the accumulated depreciation at the end of year 6? Please enter the amount in € rounded to the nearest integer. 6 What's the present value of a perpetuity of €1, 000 payable semiannu- ally if money is worth 6% compounded monthly and the first payment is due 2 years from now? (a) €56, 688.63 (b) €17, 429.62 (c) €31, 869.64 (d) €30, 092.53
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
7) Consider the following information: Asset Cost $56,000Salvage value 1,000Life 10 yearsDepreciation method Straight Line a. What is the depreciation in year 3? b. What would the depreciation in year 4 be if at the beginning of the year we think that the total asset life will be only 8 years instead of 10 years?
The price of a car depreciates by 25% each year. Find the price of a car after 5 years if it is currently worth 37000OMR. Select one: а. 8780.273 OMR b. 46250 OMR С. 227750 OMR d. None of the above
59. What is the depreciation factor per year of a hand tractor that is bought at P150, 000.00, if it has no more value at the end of the fifth year? a. 25,000 pesos/year b. 30,000 pesos/year c. 60,000 pesos/year d. 15,000 pesos/year
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).
29. X Corporation is considering buying a $25,000 machine. Its estimated useful life is 5 years, with no salvage value. X anticipates annual net income after taxes of $1,500 from the new machine. What is the rate of return on average investment, assuming that X uses straight-line depreciation and that the net income is earned uniformly throughout each year? A. 6.0% B. 8.0% C. 12.0% D. 26.0% E. 52.0%
at a cost of P depreciation nearest peso.) scrap or at the end of its useful life? a 12.75 million with an useful life of twenty years. What is the estimated
Compare the alternatives below on the basis of their capitalized costs with adjustments made for inflation. Use i =12% per year and f = 3% per year. Alternative X Y First cost, $ −18,500,000 −9,000,000 AOC, $ per year −25,000 −10,000 Salvage value, $ 105,000 82,000 Life, years ∞ 10
The equipment used on a 4-year project will be sold at the end of the project (in Year 5) for $600 in nominal terms. If the expected inflation rate is 3.7% p.a., what is the real value of the equipment's salvage value? Question 5Answer a. $538 b. $482 c. $519 d. $500