2. A company bought an electrical equipment worth Php 235,000 with useful life of 10 years. What are the book values of the asset at the end of year if the equipment has a salvage value of Php 15,000 using: a. Straight Line Method b. Sinking Fund Method at 12% interest rate c. Declining Balance Method d. Double Declining Balance Method e. Sum-of-the-Year's-Digit Method

Q: A machine costs P 8,000 which last for 7 years with a salvage value at the end of its life of P 355.…

A: Depreciation is the decrease in the value of the asset due to wear and tear over the useful life of…

Q: An earth moving equipment has a first cost of P 25,000, estimated life of 6 years, with no salvage…

A: In Sinking fund method, the depreciation of the asset is calculated to accumulate the amount of…

Q: a) Determine the depreciation of the first year of equipment used for research. The initial…

A: Purchase price of Equipment: $4.2 million Useful life: 6years. Residual value $341 thousand

Q: An asset costs $19,000. At a depreciation rate of 20 percent, calculate its book value using…

A: Depreciation is considered as an expense that is charged on the value of the Asset. It can be…

Q: How would you calculate the depreciation of an asset using the sum of digits method if the asset has…

A: The objective of this question is to calculate the depreciation of an asset using the sum of digits…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.