1. A company purchases an asset for the P10,000 and plans to keep it for 20 years. If the salvageis zero at the end of 20" year, what is the book value in the third year? Use SOYD method2. A machine purchased for P150,000 its estimated Ilife is 15 years, after which it will be sold forP40,000 find the book value during the 6thyear if the sum of the year digit depreciation is used.

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Answered: 1. A company purchases an asset for the…

1. A company purchases an asset for the P10,000 and plans to keep it for 20 years. If the salvage yalue is zero at the end of 20h year, what is the book value in the third year? Use SOYD method

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1. A company purchases an asset for the P10,000 and plans to keep it for 20 years. If the salvage
is zero at the end of 20" year, what is the book value in the third year? Use SOYD method
2. A machine purchased for P150,000 its estimated Ilife is 15 years, after which it will be sold for
P40,000 find the book value during the 6th
year if the sum of the year digit depreciation is used.

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