1. Rylai is the sole proprietor of a small lawn-care service. Last year, she purchased an eight-horsepower chipper-shredder to make mulch out of small tree branches and leaves. At the time it cost Php760. She expects that the value of the chipper-shredder will decline by a constant amount each year over the next six years. At the end of six years, she thinks that it will have a salvage value of Php100. Construct a table that gives the book value of the chipper-shredder at the end of each year, for six years. Also indicate the accumulated depreciation at the end of each year. Year Depreciation Book Value Accumulated Charge Depreciation 760 3 4 100 2.
1. Rylai is the sole proprietor of a small lawn-care service. Last year, she purchased an eight-horsepower chipper-shredder to make mulch out of small tree branches and leaves. At the time it cost Php760. She expects that the value of the chipper-shredder will decline by a constant amount each year over the next six years. At the end of six years, she thinks that it will have a salvage value of Php100. Construct a table that gives the book value of the chipper-shredder at the end of each year, for six years. Also indicate the accumulated depreciation at the end of each year. Year Depreciation Book Value Accumulated Charge Depreciation 760 3 4 100 2.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
Transcribed Image Text:1. Rylai is the sole proprietor of a small lawn-care service. Last year, she
purchased an eight-horsepower chipper-shredder to make mulch out of
small tree branches and leaves. At the time it cost Php760. She expects that
the value of the chipper-shredder will decline by a constant amount each
year over the next six years. At the end of six years, she thinks that it will
have a salvage value of Php100.
Construct a table that gives the book value of the chipper-shredder at the
end of each year, for six years. Also indicate the accumulated depreciation
at the end of each year.
Year
Depreciation
Book Value
Accumulated
Charge
Depreciation
760
1
3
4
5
6
100
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