16. An old pump costs P25,000 a year to maintain. What expenditure for a new pump is justified if no maintenan will be required for the first 2 years, P5,000 a year for the next 8 years and P25,000 a year thereafter. Assur cost of money is 10% pa and no other costs are to be considered. a. P126,940 b. P 131,569 c. P 126,825.03 d. P162,825.03
16. An old pump costs P25,000 a year to maintain. What expenditure for a new pump is justified if no maintenan will be required for the first 2 years, P5,000 a year for the next 8 years and P25,000 a year thereafter. Assur cost of money is 10% pa and no other costs are to be considered. a. P126,940 b. P 131,569 c. P 126,825.03 d. P162,825.03
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
![a. P 10,126
b. P 12,131
d. P11,520
с. Р11,825
The depreciation deduction, or cost-recovery allowance, that is allowable in year four (d4) is
What is the book value at the end of the fourth year (BV4)?
b. P 12,131
18.
a. Р 10,126
c. P11,825
d. P17,280](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84e36f1f-43ff-44d9-b23e-1cfb7fafc4d7%2F725bc351-ceaf-4574-a250-5bfbbd184b64%2Fxp6nsrf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:a. P 10,126
b. P 12,131
d. P11,520
с. Р11,825
The depreciation deduction, or cost-recovery allowance, that is allowable in year four (d4) is
What is the book value at the end of the fourth year (BV4)?
b. P 12,131
18.
a. Р 10,126
c. P11,825
d. P17,280
![16. An old pump costs P25,000 a year to maintain. What expenditure for a new pump is justified if no maintenan
will be required for the first 2 years, P5,000 a year for the next 8 years and P25,000 a year thereafter. Assur.
cost of money is 10% pa and no other costs are to be considered.
a. P126,940
b. P 131,569
c. P 126,825.03 d. P162,825.03
17. A firm purchased and placed in service a new piece of semi-conductor equipment The cost basis for t
equipment is P100,000. Determine the depreciation charge permissible in the fourth year. Use Modifi
Accelerated Cost Recovery System (MACRS). Class life is six years
Activate Windows](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84e36f1f-43ff-44d9-b23e-1cfb7fafc4d7%2F725bc351-ceaf-4574-a250-5bfbbd184b64%2Fr7kz8n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:16. An old pump costs P25,000 a year to maintain. What expenditure for a new pump is justified if no maintenan
will be required for the first 2 years, P5,000 a year for the next 8 years and P25,000 a year thereafter. Assur.
cost of money is 10% pa and no other costs are to be considered.
a. P126,940
b. P 131,569
c. P 126,825.03 d. P162,825.03
17. A firm purchased and placed in service a new piece of semi-conductor equipment The cost basis for t
equipment is P100,000. Determine the depreciation charge permissible in the fourth year. Use Modifi
Accelerated Cost Recovery System (MACRS). Class life is six years
Activate Windows
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