1. The initial cost of a paint sand mill, including its installation is P 700,000.00.The BIR approved life of this machine is 19 years for depreciation. The estimatedsalvage value of the mill is P8,000.00 and the cost of dismantling is estimated tobe P 5,000.00. Using straight line depreciation, what is the book value of themachine at the end of six years?2. Equipment bought for P 87,000.00 is expected to last for 24 years. If the scrapvalue after 20 years is P 60,000.00. How much is the depreciation for year 12?3. Determine the rate of depreciation, the total depreciation up to the end of the6th year and the book value at the end of 6 years for an asset that cost P 16,000.00new and has an esmated scrap value of P 2,000.00 at the end of 10 years by thedouble declining balance method.4. A firm bought an equipment for P 58,000.00. Other expenses inclu dinginstallation amounted to P 2,000.00. The equipment is expected to have a life of8 years with a salvage of 10% of the original cost. Determine the book value atthe end of 13 years by sinking fund method at 6% interest.5. An asset is purchased for P 3,000.00. Its est imated life is 5 years after which iswill be sold for P 20,000.00. Find the depreciation for the first year using SYD.6. A television company purchased machinery for P 100,000.00 on July 1, 2010. Itis estimated that it will have a useful life of 10 years, scrap value of P 4, 000.00,production of 40,000 units and working hours of 120,000. The machine produces44,000 units in 2011. Compute using service and hour method the 2011depreciation.||

Hi student Since there are multiple questions, we will answer only first question.

1. The initial cost of a paint sand mill, including its installation is P 700,000.00. The BIR approved life of this machine is 19 years for depreciation. The estimated salvage value of the mill is P8,000.00 and the cost of dismantling is estimated to be P 5,000.0o. Using straight line depreciation, what is the book value of the machine at the end of six years?

1. The initial cost of a paint sand mill, including its installation is P 700,000.00. The BIR approved life of this machine is 19 years for depreciation. The estimated salvage value of the mill is P8,000.00 and the cost of dismantling is estimated to be P 5,000.0o. Using straight line depreciation, what is the book value of the machine at the end of six years?

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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