2. Equipment bought for P 87,000.00 is expected to last for 24 years. If the scrap value 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 the 6th year and the book value at the end of 6 years for an asset that cost P 16,000.00 new and has an estimated scrap value of P 2,000.00 at the end of 10 years by the double declining balance method. 4. A firm bought an equipment for P 58,000.00. Other expenses including installation amounted to P 2,000.00. The equipment is expected to have a life of 8 years with a salvage of 10% of the original cost. Determine the book value at the end of 13 years by sinking fund method at 6% interest. 5. An asset is purchase d for P 3,000.00. Its estimated life is 5 years after which is will be sold for P 20,000.0o. Find the depreciation for the first year using SYD. 6. A television company purchased machinery for P 100,000.00 on July 1, 2010. It is 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 produces 44,000 units in 2011. Compute using service and hour method the 2011 depreciation.
2. Equipment bought for P 87,000.00 is expected to last for 24 years. If the scrap value 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 the 6th year and the book value at the end of 6 years for an asset that cost P 16,000.00 new and has an estimated scrap value of P 2,000.00 at the end of 10 years by the double declining balance method. 4. A firm bought an equipment for P 58,000.00. Other expenses including installation amounted to P 2,000.00. The equipment is expected to have a life of 8 years with a salvage of 10% of the original cost. Determine the book value at the end of 13 years by sinking fund method at 6% interest. 5. An asset is purchase d for P 3,000.00. Its estimated life is 5 years after which is will be sold for P 20,000.0o. Find the depreciation for the first year using SYD. 6. A television company purchased machinery for P 100,000.00 on July 1, 2010. It is 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 produces 44,000 units in 2011. Compute using service and hour method the 2011 depreciation.
Chapter9: Capital Budgeting And Cash Flow Analysis
Section9.A: Depreciation
Problem 1P
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Transcribed Image Text:2. Equipment bought for P 87,000.00 is expected to last for 24 years. If the scrap
value 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 the
6th year and the book value at the end of 6 years for an asset that costP 16,000.00
new and has an estimated scrap value of P 2,000.00 at the end of 10 years by the
double declining balance method.
4. A firm bought an equipment for P 58,000.00. Other expenses including
installation amounted to P 2,000.00. The equipment is expected to have a life of
8 years with a salvage of 10% of the original cost. Determine the book value at
the end of 13 years by sinking fund method at 6% interest.
5. An asset is purchased for P 3,000.00. Its estimated life is 5 years after which is
will 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. It
is estimated that it will have a useful life of 10 years, scrap value of P 4, 000.0o,
production of 40,000 units and working hours of 120,000. The machine produces
44,000 units in 2011. Compute using service and hour method the 2011
depreciation.
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