Power to a remote transmitting station is provided by a Diesel-electric generator unit. The original cost of the unit is Php. 65,000.00. It costs Php. 2,000.00 to ship the unit to the job site. An additional cost of Php. 3,000.00 was incurred for installation. (a) Determine the annual depreciation cost by the straight-line method, if the unit has an expected life of 10 years. The salvage value of the unit at the end of its life was estimated at Php. 5,000.00

Power to a remote transmitting station is provided by a Diesel-electric generator unit. The original cost of the unit is Php. 65,000.00. It costs Php. 2,000.00 to ship the unit to the job site. An additional cost of Php. 3,000.00 was incurred for installation. (a) Determine the annual depreciation cost by the straight-line method, if the unit has an expected life of 10 years. The salvage value of the unit at the end of its life was estimated at Php. 5,000.00

Structural Analysis

6th Edition

ISBN:9781337630931

Author:KASSIMALI, Aslam.

Publisher:KASSIMALI, Aslam.

Chapter2: Loads On Structures

Section: Chapter Questions

Problem 1P

See similar textbooks

Similar questions

A contractor purchases an eqpt worth P250k & he estimates that it will be able to produce 1M units during its life and he expects to receive P15k as scrap value when he sells it. During a certain year he used the machine for 120k units, determine depreciation cost for that year.
7. Rapir Automation, which manufactures addressable quarter-turn electric actuators, is planning to set aside Php5M now and Php7.5M one year from now for possible replacement of the heating and cooling systems in three of its larger manufacturing plants. If the replacement won't be needed for 4 years, how much will the company have in the account, if it earns interest at a rate of 8% per year? A Php192.58k B Php9.63M C Php325k D Php16.25M
At 6% interest rate, find the capitalized cost of a building whose cost is ₱250M with a life of 20 years. The building must be partially rebuilt at a cost of ₱130M at the end of each 20 years
A machine costs ₱60,000 if paid in cash. On the installment plan, a purchaser should pay ₱20,000 down payment and 10 quarterly installments, the first due at the end of the first year after purchase. If money is worth 15% compounded semi-annually, determine the quarterly installment.
Power to a remote transmitting station is provided by a Diesel-electric generator unit. The original cost of the unit is P65,000. It cost P2,000 to ship the unit at the job site. An additional cost of P3,000 incurred for installation. Determine the book value after 5 years if the unit has an expected life of 10 years using a). Straight-line method b). Sinking fund method if the rate of interest is 5%. The salvage value of the unit at the end of its life was estimated at P5,000.
An industrial plant bought a generator set for P80,000. Other expenses including installation amounted to P20,000. The generator set is to have a life of 17 years with a salvage value of P5000. Determine the depreciation charge during the 13th year and the book value at the end of 13 years by: (a.) Declining balance method (b.) Double declining balance method (c.) sinking fund method at 12% (d.) SYD method Kindly solve this Engineering economy problem. Thank you
2. A backhoe loader is purchased with an amount of P 2,800,000.00 by a contractor. The manufacturer explained that the said equipment has an estimated 10 years of useful life and a salvage value of P 125,000.00. Determine its depreciation and book value for each year using the Straight Line Method. Year 0 1 2 3 4 5 6 7 8 Book Value P 0.00 Depreciation per year ℗ 0.00 Book Value at the end of the Year $ 2,800,000.00
2. A manufacturing firm contemplates retiring an existing machine at the end of 2002. The new machine to replace the existing one will have an estimated cost of P400,000. This expense will be partially defrayed by sale of the old machine as scrap for P30,000. To accumulate the balance of the required capital, the firm will deposit the following sum in an account earning an interest of 5% compounded quarterly: P60,000 at the end of 1999 P60,000 at the end of 2000 P80,000 at the end of 2001 What cash disbursement will be necessary at the end of 2002 to purchase the new machine?
A manufacturing company buys a machine fir 50000. It estimates the machine's useful life is 20 years and that it can then be sold for 5000. Using straight line depreciation, what is the annual depreciation charge?
A test facility setup costs 10,00,000 at the time of installation, and its scrap value is 50,000 at the end of the useful life in 10 years. Adopting a straight line method for computation of depreciation, estimate the book value of the facility at the end of five years.
42. A bank offers a 12 % interest to be compounded annually. How much should a teacher deposit now if he wants to receive Php 15000 at the end of each year for 5 years? O a. Php 50000 O b. Php 53256.78 O c. Php 42500 O d. Php 54071.64 O e. None of the above
5. A certain machine has an initial cost of P 50,000 and a book value of P 15,811.39 after five years. Find the salvage value of the machine if it has an economic life of 15 years. Use declining balance method. A. PhP 1581 B. PhP 5000 C. PhP 3000 D. PhP 2317