Senin, 21 Maret 2016

TUGAS III
ANALISIS INVESTASI TAMBANG
DEPRECIATION METHOD

DISUSUN OLEH:
ADVENTIUS RONALD PALISU
D621 13 004

PROGRAM STUDI TEKNIK PERTAMBANGAN

JURUSAN TEKNIK GEOLOGI
FAKULTAS TEKNIK
UNIVERSITAS HASANUDDIN

GOWA
2016

1. Freeport-McMoRan Mining Company has purchased a computer-controlled gold ore

grading unit for $80,000. The unit has an anticipated life of 10 years and a salvage value
of $10,000. Use SL, DDB and SYD methods to account depreciation and book values for
each year.
Answer:
a. Straight Line
BV (Book Value): $80,000
SV (Salvage Value): $10,000
n (Life Time): 10 years
Depreciation expanse per year =

costresidual value
years of use life

$80.000 $10.000
10

= $7.000
Year

Depreciation
expense (debit)

Accumulated
depreciation
(credit)

Accumulated
depreciation
balance

Underpreciated
balance (book
value)
80,000.00

1
2
3
4
5
6
7
8
9
10

$7,000
$7,000
$7,000
$7,000
$7,000
$7,000
$7,000
$7,000
$7,000
$7,000

$7,000
$7,000
$7,000
$7,000
$7,000
$7,000
$7,000
$7,000
$7,000
$7,000

$70,000

$ 70,000

b. DDL (Double-declining balance)

BV (Book Value): $80,000
SV (Salvage Value): $10,000
n (Life Time): 10 years

2
Depreciation expanse per year = n

$7,000
$14,000
$21,000
$28,000
$35,000
$42,000
$49,000
$56,000
$63,000
$70,000

$
$
$
$
$
$
$
$
$
$

73,000
66,000
59,000
52,000
45,000
38,000
31,000
24,000
17,000
10,000

2
10

= 0.2
Year

Computation

Depreciation
Expense

80000 x 0.2

64000 x 0.2

51200 x 0.2

40960 x 0.2

32768 x 0.2

26214.4 x 0.2

20971.52 x 0.2

16777.216 x 0.2

13421.7728 x 0.2

10

10737.41824 x
0.2

Total

Accumulated
deprecitation

$
16,000.00
$
12,800.00
$
10,240.00
$
8,192.00
$
6,553.60
$
5,242.88
$
4,194.30
$
3,355.44
$
2,684.35
$
737.42
$
70,000.00

c. DB (Declining Balance)
BV (Book Value): $80,000
SV (Salvage Value): $10,000
n (Life Time): 10 years
1

Depreciation expanse per year = 1 (

)

$10.000 10
=1(
)
$80.000
= 0.187

16,000.00

28,800.00

39,040.00

47,232.00

53,785.60

59,028.48

63,222.78

66,578.23

69,262.58

70,000.00

Book value
$
64,000.00
$
51,200.00
$
40,960.00
$
32,768.00
$
26,214.40
$
20,971.52
$
16,777.22
$
13,421.77
$
10,737.42
$
10,000.00

Year

Computation

Depreciation
Expense

Book value
80,000

80.000 (0,187)

15.016

64.984

64.984 (0,187)

12.197

52.787

52.787 (0,187)

9.908

42.879

42.879 (0,187)

8.048

34.831

34.831 (0,187)

6.538

28.293

28.293 (0,187)

5.311

22.982

22.982 (0,187)

4.314

18.668

18.668 (0,187)

3.504

15.164

15.164 (0,187)

2.846

12.318

10

12.318 (0,187)

2.318

10.000

70,000.00

Total

2. A nickel mine was purchased for $10 million. It has an anticipated gross income of $5.0
million per year for years 1 to 5 and $3.0 million per year after year 5. Assume that
depletion charges do not exceed 50% of taxable income. Compute annual depletion
amounts for the mine. How long will it take to recover the initial investment at i = 0%?
Answer:
A 22% depletion applies to nickel. Depletion amounts are
Years 1 to 5:

0.22($5,000,000) = $1,100,000

Years thereafter:

0.22($3,000,000) = $660,000

A total of $5,500,000 is written off in 5 years, and the remaining $4,500,000 is written
off at $660,000 per year. The total number of years is
5+

$4,500,000
$660,000

= 5 + 6.81 = 11.81 = 12

In 12 years, the initial investment could be fully depleted.

3. A fiber optics testing device is to be DDB depreciated. It has a first cost of $25,000 and
an estimated salvage of $2500 after 12 years. (a) Calculate the depreciation and book
value for years 1 and 4. (b) Calculate the implied salvage value after 12 years.
Answer:

(a) The DDB fixed depreciation rate is d = 21n = 2/12 = 0.1667 per year. Use equations:
Year 1:

D1= (0.1667)(25000)(1 - 0.1667)1 - 1 = $4167

BV1 = 25000(1 - 0.1667)1 = $20833

Year 4:

D4 = (0.1667)(25000)(1 - 0.1667)4-1 = $2411

BV4 = 25000(1 - 0.1667)4 = $12054

(b) From the equation, the implied salvage value after 12 years is
Implied S = 25000(1 - 0.1667)12 = $2803
Since the estimated S = $2500 is less than $2803, the asset is not fully depreciated when
its 12-year expected life is reached.