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construction accounting problem Herald Richter and Associates 5...

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Accounting

construction accounting problem

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Herald Richter and Associates 5 years ago purchased for $45,000 a microwave signal graphical plotter for corrosion detection in concrete structures. It is expected to have the market values and annual operating costs shown for the rest of its useful life of up to 3 years. It could be traded now at an appraised market value of $8000 with an interest rate of 15%. The ESL year is being determined in order to determine which year it must be replaced. Which of the following is set up incorrectly? (Mark all that apply) For n=3:AWD=8000(A/P,15%,3)350,000(P/F,15%,1)+ 53,000(P/F,15%,2)+60,000(P/F,15%,3)2(A/P,15%,3)+1000(A/F,15%,3)=$57,089 For n=3: AWD =450001,000(P/F,15%,1)(A/P,15%,3)+$60,000(P/F,15%,3) For n=1:AWD=8000(A/P,15%,1)50,000(P/F,15%,1)(A/P,15%,1)+6000(A/F,15%,1)= 8000(1.15)44,000=$53,200 For n=2:AWD=45000(A/P,15%,2){50,000(P/F,15%,1)+53,000(P/F,15%,2)(A/P,15%,2)+ 4000(A/F,15%,2)

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