13. A generator has a first cost of P395,000 installation cost of P25,000 has an estimated salvage value of P25,000 after 5 years. Using sum of the year digits method, determine the book value after 4 years.
13. A generator has a first cost of P395,000 installation cost of P25,000 has an estimated salvage value of P25,000 after 5 years. Using sum of the year digits method, determine the book value after 4 years.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer items 13, 14, 15 and 16. Thank you.
Transcribed Image Text:13. A generator has a first cost of P395,000 installation cost of P25,000 has an
estimated salvage value of P25,000 after 5 years. Using sum of the year digits
method, determine the book value after 4 years.
14. A company purchase an asset for P15,000 and plans to keep it for 18 years. If the
salvage value is zero at the end 18th year. What is the depreciation in the 4th year?
Use SOYD
15. An equipment has a first cost of P25,000 has a salvage value of P3000 after 8 years.
What is the depreciation after 4 years using declining balance method?
16. A large corporation has purchased a jet plane for use its executives. The cost of the
plane is P86 million. It has a useful life of 10 years. The estimated resale value at the
end of 10 years is P8 million pesos. Using the SOYD, what is the book value of the jet
plane at the end of 4 years?
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