1. A cooling water pumping station at a manufacturing plant in ligan City costs P30,000,000 to construct, and it is projected to have a 25-year life with an estimated salvage value of 10% of the construction cost. Calculate the annual depreciation charge for year 10 (d,so) using: Depreciation Method a) Straight Line Method b) Declining Balance Method c) Double Declining Balance Method d) Sinking Fund Method at 10% e) Sum-of-the-Years' Digits Method To verify your answers, solve both a) manually (3-decimal accuracy, dio only) and b) by using spreadsheets (choose any 2 methods) - build the depreciation and book value schedules. 2. If the cooling water pumping station in Problem 1 will be book-depreciated to zero over a recovery period of 30 years, calculate do manually using the double declining balance method

1. A cooling water pumping station at a manufacturing plant in ligan City costs P30,000,000 to construct, and it is projected to have a 25-year life with an estimated salvage value of 10% of the construction cost. Calculate the annual depreciation charge for year 10 (d,so) using: Depreciation Method a) Straight Line Method b) Declining Balance Method c) Double Declining Balance Method d) Sinking Fund Method at 10% e) Sum-of-the-Years' Digits Method To verify your answers, solve both a) manually (3-decimal accuracy, dio only) and b) by using spreadsheets (choose any 2 methods) - build the depreciation and book value schedules. 2. If the cooling water pumping station in Problem 1 will be book-depreciated to zero over a recovery period of 30 years, calculate do manually using the double declining balance 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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