1. An equipment costs P 1,200,000.00 at the end of its economic life of 5 years. Its salvage value is P 300,000. Using sum of the year's digit method, what will be its book value on the third year. 2. A machine costs P 1,500,000.00. It has a salvage value of P 600, 000 at the end of its economic life. Using the sum of the year's digit method, the book value at the end of two years is estimated to be P 870, 000. What is the machine economic life in years?
1. An equipment costs P 1,200,000.00 at the end of its economic life of 5 years. Its salvage value is P 300,000. Using sum of the year's digit method, what will be its book value on the third year. 2. A machine costs P 1,500,000.00. It has a salvage value of P 600, 000 at the end of its economic life. Using the sum of the year's digit method, the book value at the end of two years is estimated to be P 870, 000. What is the machine economic life in years?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please dont use table, use depriciation computing
Transcribed Image Text:1. An equipment costs P 1,200,000.00 at the end of its economic life of 5 years.
Its salvage value is P 300,000. Using sum of the year's digit method, what
will be its book value on the third year.
2. A machine costs P 1,500,000.00. It has a salvage value of P 600, 000 at the
end of its economic life. Using the sum of the year's digit method, the book
value at the end of two years is estimated to be P 870, 000. What is the
machine economic life in years?
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