Question

ENGINEERING ECONOMY: Based on the units of production method, determine the deprecation allowance and book value...

ENGINEERING ECONOMY: Based on the units of production method, determine the deprecation allowance and book value in year 5 using this information:

Cost basis= $100,000

Salvage value= $20,000

Life span= 5 years

Production volume per year|

1:20,000

2: 30,000

3: 40,000

4: 50,000

5:60,000

Please show all work using equations. Thank you!

Engineering   Civil-Engineering   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
ENGINEERING ECONOMY: Based on the ADS method, determine the depreciation amount and the book value at...
ENGINEERING ECONOMY: Based on the ADS method, determine the depreciation amount and the book value at the end of the third year of an asset purchased by a construction company. The asset cost is $150,000 with a market value of $35,000 at the end of useful life of 6 years. Please answer by using equations, not excel. Thank you
Prepare Journal entries Post to t-account Find Book value -A non-profit purchases shuttle to drive clients...
Prepare Journal entries Post to t-account Find Book value -A non-profit purchases shuttle to drive clients to appointments on 1/119 -The buss purchased by issuing at $160,000 not payable -It is estimated that the buss will have a life span of 4 years -The bus is expected to run for 100,000 miles -After the bus is done being used it will be sold foe $40,000 2a. Assume the non profit records depreciation once a year on 12/31 (straight line method)...
Production in units 100,000 Sales in units ? Ending finished goods Inventory in units ? Sales...
Production in units 100,000 Sales in units ? Ending finished goods Inventory in units ? Sales in Rupees Rs 2,000,000 Costs : Other selling and administrative expenses Rs 40,000 Other factory overhead costs Rs 22,000 Selling and administrative salaries Rs 240,000 Maintenance Factory Rs 50,000 Utilities factory Rs 60,000 Building Rent (Production Uses 80% of the Space; administrative and sales offices use the rest) Rs 100,000 Royalty paid for use of Production patent, Rs 0.5 per unit produced) ? Rent...
The average rate of return is another method that does not use present value and is...
The average rate of return is another method that does not use present value and is commonly used in making capital investment decisions. Unlike the cash payback method, the average rate of return focuses on income rather than cash flow. Assume that the investment involves an initial outlay of $100,000 with a five-year useful life and no salvage value under straight-line depreciation. The revenues are as follows: Year 1 - $10,000, Year 2 - $20,000, Year 3 - $30,000, Year...
E 9-3A. Depreciation Methods A delivery truck costing $20,000 is expected to have a $2,000 salvage...
E 9-3A. Depreciation Methods A delivery truck costing $20,000 is expected to have a $2,000 salvage value at the end of its useful life of four years of 100,000 miles.  Assume that the truck was purchased on January 2.  Calculate the depreciation expense for the second year using each of the following depreciation methods: (a) straight-line, (b) double-declining balance, and (c) units-of-production.  (Assume that the truck was driven 30,000 miles in the second year.) a. Straight-line depreciation = (Acquisition Cost - Salvage value)...
For a $10,000 communications system with a useful life of 5 year and salvage value of...
For a $10,000 communications system with a useful life of 5 year and salvage value of $778, construct the annual depreciation allowance table (including depreciation amounts and book values), using double-declining depreciation method.
Hi, could you solve problem 4.19 (chapter 4, problem 19) in the Basics of Engineering Economy...
Hi, could you solve problem 4.19 (chapter 4, problem 19) in the Basics of Engineering Economy 2nd Edition textbook. It's the first problem from that textbook I've come across that hasnt been done. Thank you very much. The Briggs and Stratton commercial division designs and manufactures small engines for golf maintainence equipment. a robotics-based testing system will ensure their new guaranteed always start system works for every engine produced. Compare the two systems at MARR - 10% per year. solve...
Units of Activity - Commercial Lawn Mower: Acquired January 1. Purchased for $14,000 salvage value is...
Units of Activity - Commercial Lawn Mower: Acquired January 1. Purchased for $14,000 salvage value is $2,000. Useful life is 5 years, Total units of activity = 6,250 hours. A. What is the depreciable cost amount? B. Show your computation to calculate the depreciation rate per hour. C. Will the depreciation rate change from year to year? Yes or No D. Complete the following Units of Activity Depreciation table for the first five years they use the equipment: Year Hours...
6) New York Limousine Service owns 10 limos and uses the units of production method in...
6) New York Limousine Service owns 10 limos and uses the units of production method in computing depreciations on its limos. Each limo costing $38,000 is expected to be driven 150,000 miles and is expected to have a salvage value of $4,500. Limo # 1 was driven 38,000 miles in year 1 and 36,000 miles in year 2. Determine the depreciation for each year and the book value at the end of year 2. Use this information to answer questions...
Engineering Economic Analysis Question: A company purchased production equipment that cost $120,000. They used sum-ofyears’-digits depreciation...
Engineering Economic Analysis Question: A company purchased production equipment that cost $120,000. They used sum-ofyears’-digits depreciation with an estimate 5-year life and estimate salvage value of $0. The company’s total tax rate is 34%. After 5 years, the equipment was sold for $40,000. It had reduced operating costs by $32,000 a year, before taxes. Perform an after-tax net present worth analysis to determine if the purchase was satisfactory, assuming an MARR of 12%.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT