The shed initially cost 21300 but had to be renovated at a cost of 740. The shed was expected to last 7 years with a residual value of 1950. Repairs costing 560 were incurred at the end of the first year of use Compute the amount to be capitalized for the shed.
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The shed initially cost 21300 but had to be renovated at a cost of 740. The shed was expected to last 7 years with a residual value of 1950. Repairs costing 560 were incurred at the end of the first year of use Compute the amount to be capitalized for the shed.
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- The original cost for a distillation tower is $24,000 and the useful life of the toweris estimated to be 8 years. The sinking-fund method for determining the rate of depreciation isused and the annual interest rate for the depreciation fund is 6 percent. If the scrap value ofthe distillation tower is $4000, determine book value of equipment at the end of 5 years.A building maintenance bought a pump set for 90,000. Installation cost amounted to P10,000. The pump set is to have a salvage value of P5,000 at the end of its 17 years life. Determine the depreciation charge during the 13th year and the book value at the end of 13 years by the(a) sinking fund method at 12% (b) SYD method.A building maintenance bought a pump set for 90,000. Installation cost amounted to P10,000. The pump set is to have a salvage value of P5,000 at the end of its 17 years life. Determine the depreciation charge during the 13th year and the book value at the end of 13 years by the (a) declining balance method, (b) double declining balance method, (c) sinking fund method at 12% and (d) SYD method.
- A new engine was installed by a textile plant at a cost of 398,000 and projected to have a useful life of 14 years. At the end of the useful life, it is estimated to have a salvage value of 37,000. Determine the capitalized cost it the interest is 18% compounded semi-anually.An industrial plant bought a generator set for 90,000. Other expenses including installation amounted to 10,000. The generator set is to have a life of 17 years with a salvage value at the end of life of 5,000. Determine the depreciation charge during the 13th year and the book value at the end of 13 years by the (a) declining balance method, (b) double declining balance method, (c) sinking fund method at 12% and (d) SYD method.On January 1, 20x1, ABC Co. received 2,000,000 grant from the government to aid in the construction of a new building. The construction of the building was finished on March 31, 20x2 for a total cost of 6,000,000. The building is estimated to have a useful life of 30 years and a residual value of 1,000,000. If ABC Co. uses the net presentation, how much is the depreciation expense in 20x1?
- The equipment has a delivered cost of $58,000. An additional $4,000 is required to install the new equipment. The new control device falls into the 7-year class for depreciation and will be depreciated using MACRS. At the end of 8 years, the estimated Salvage Value of the new equipment is $20,000.The existing control device has been in use for approximately 10 years, and it has been fully depreciated (that is, its book value is zero for the old device). However, its current market value for the old device is estimated to be $5,000. The applicable tax rate is 34%. The new control device requires lower maintenance costs and frees personnel who would otherwise monitor the system. In addition, it reduces product wastage. In total, it is estimated that during its eight-year life, the yearly savings will amount to $20,000 if the new control device is used. Yearly sales revenue is unchanged. The illustrative firm’s cost of capital is 15%. Since the new machine is more efficient, that it will…An industrial plant bought a generator set for 90,000. Other expenses including installation amounted to 10,000. The generator set is to have a life of 17 years with a salvage value at the end of life of 5,000. Determine the book value at the end of 13 years using declining balance method Determine the book value at the end of 13 vears using double declining balance method Determine the book value at the end of 13 vears using sinking fund method having 12% interest Determine the book value at the end of 13 years using SYD methodAn industrial plant bought a generator set for 99,000. Other expenses including installation amounted to 11,000. The generator set is to have a life of 17 years with a salvage value at the end of life of 5,500. The plant has Production of 500,000 units and working hours of 125,000. The plant uses the generator for 15,000 hours and produces 35,000 units. Determine the depreciation charge during the 13th year and the book value at the end of 13 years by the (a) declining balance method, (b) double declining balance method, (c) sinking fund method at 12% and (d) SYD method. (e) working hours (f) output method.
- A piece of equipment purchased for $560 will be depreciated straight line to zero. The IRS classifies this asset as having an eight-year life. The equipment will be used in a five-year project. The salvage value at the end of the project will be $40. Find the book value of the equipment at the end of year three.During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated seven machines for $250,000 to improve efficiency in production of their remaining useful life of eight years Low-cost repairs throughout the year totaled $79,000 Replaced a broken gear on a machine for $6,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated five machines for $100,000 to improve efficiency in production of their remaining useful life of five years Low-cost repairs throughout the year totaled $70,000 Replaced a broken gear on a machine for $10,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?
