Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 45 views

    Engineering Economics Quiz F1

    Uploaded by

    Marielle Cochico
    The document contains 5 questions regarding the calculation of depreciation for various machines and equipment using different depreciation methods like straight-line, declining balance, double declining balance, sinking fund, and sum-of-years' digits. The questions provide details of original costs, additional expenses, estimated useful lives, salvage values, and ask to calculate annual depreciation costs and book values for the assets at different points in time over their useful lives.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Engineering Economics Quiz F1

    Uploaded by

    Marielle Cochico
    45 views1 page
    The document contains 5 questions regarding the calculation of depreciation for various machines and equipment using different depreciation methods like straight-line, declining balance, double declining balance, sinking fund, and sum-of-years' digits. The questions provide details of original costs, additional expenses, estimated useful lives, salvage values, and ask to calculate annual depreciation costs and book values for the assets at different points in time over their useful lives.

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document contains 5 questions regarding the calculation of depreciation for various machines and equipment using different depreciation methods like straight-line, declining balance, double declining balance, sinking fund, and sum-of-years' digits. The questions provide details of original costs, additional expenses, estimated useful lives, salvage values, and ask to calculate annual depreciation costs and book values for the assets at different points in time over their useful lives.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    45 views1 page

    Engineering Economics Quiz F1

    Uploaded by

    Marielle Cochico
    The document contains 5 questions regarding the calculation of depreciation for various machines and equipment using different depreciation methods like straight-line, declining balance, double declining balance, sinking fund, and sum-of-years' digits. The questions provide details of original costs, additional expenses, estimated useful lives, salvage values, and ask to calculate annual depreciation costs and book values for the assets at different points in time over their useful lives.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Engineering Economics

    Quiz F1

    1. A machine shop purchased 10 years ago a milling machine for P60,000. A straight-line
    depreciation reserve had been provided on a 20 year life of the machine. The owner of the
    machine shop desires to replace the old milling machine with a modern unit of many
    advantages costing P100,000. It can sell the old unit for P20,000. How much new capital will
    be required for the purchase?

    2. A tax and duty free importation of a 30 HP sand-mill (for paint manufacturing) cost
    P360,000, CIF Manila. Bank charges, arrastre and brokerage cost P5,000. Foundation and
    installation costs were P25,000. Other incidental expenses amounted to P20,000. Salvage
    value of the mill is estimated to be P60,000 after 20 years. Find the appraisal value of the
    mill, using straight-line depreciation, at the end of (a) 10 years and (b) 15 years.

    3. On January 1, 1978, the purchasing engineer of a Cement Co. purchased a new machine
    at a cost of P140,000. Depreciation has been computed by the straight-line method based
    on an estimated useful life of five years and residual scrap value of P12,800. On January 2,
    1981, extraordinary repairs (which were almost equivalent to a rebuilding of the machinery)
    were performed at a cost of P30,400.
    Because of the thorough going nature of these repairs, the normal life of the machinery was
    extended materially. The revised estimate of useful life was four years from January 1, 1981.
    Determine the annual provisions for depreciation for the years 1978 to 1980 and the
    adjusted provision for depreciation on December
    31, 1981. Assume payment in cash for the machine and extraordinary repairs.

    4. Power to a remote transmitting station is provided by a Diesel-electric generator unit. The


    original cost of the unit is P65,000.
    It costs P2,000 to ship the unit to the job site. An additional cost of P3,000 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
    P5,000.
    (b) Determine the annual depreciation cost by the sinking fund method. Assume that the
    annual charge for depreciation was deposited in a fund drawing compound interest at the
    rate of 5%

    5. An industrial plant bought a generator set for P90,000. Other expenses including
    installation amounted to P10,000. The generator set is to have a life of 17 years with a
    salvage value at the end of life of P5,000. 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.

    You might also like