Determine the total cost of the new factory

Assignment Help Financial Management
Reference no: EM132405186

Question

Company ABC constructed a new factory at a cost of $2,000,000. The company also purchased new machinery and equipment at a cost of $200,000. The company spent another $10,000 to configure and bring the machinery and equipment into working condition. The company estimates that the cost to dismantle and remove the factory and machinery after 10-year of use will be $100,000 and $50,000, respectively.

Instruction:

a) Calculate the present value factor with an annual discount rate of 5% for 10 years.

b) Determine the total cost of the new factory (including estimated dismantling and removal).

c) Determine the total cost of the new machinery and equipment (including estimated dismantling and removal).

d) Provide the journal entry to record the initial recognition of costs for the new factory and machinery.

Reference no: EM132405186

Questions Cloud

What is meant by selective incorporation : What is meant by selective incorporation? Discuss the history of this process and its importance on protection of individual rights.
What are the implications of executive compensation theory : What are the implications of executive compensation theory for accounting theory? The response paper should be in APA format.
How much is charlies current ratio : During 2018, Towson Company had credit sales of $48,000 and cash sales of $17,000. In 2018 Towson collected $31,000 of accounts receivable resulting
Systematic literature review : Systematic Literature Review. Submit research question on topic related to political science subfield identified during your Self-Identification Assessment.
Determine the total cost of the new factory : Company ABC constructed a new factory at a cost of $2,000,000. The company also purchased new machinery and equipment at a cost of $200,000.
An introductory slide explaining how culture : An introductory slide explaining how culture, religion, socioeconomic status, and family can affect terrorist recruitment and mentality
Explain why moss requires moist conditions : In certain organisms (such as ferns and moss), reproduction is characterized by an alternation of generations. Answer the following questions:
Research common methods for terrorism recruitment : Research common methods for terrorism recruitment. Discuss how religious, cultural, socioeconomic, and familial factors play a role in terrorism recruitment.
What is the man genotype : A man who has no freckles and flat feet marries a woman who is homozygous dominant for both traits.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd