20. Fahtima has purchased a bottle filling machine for P5,000,000. The plant engineer estimates that the machine has a useful life of five years and a salvage value of P10,000 at the end of its useful life. Compute (a) depreciation cost during the third year, (b) cumulative depreciation cost through the third year and (c) book value at the end of third year using the straight line method, sinking fund method at 8%, declining balance method, double declining balance method, and SYD method.

20. Fahtima has purchased a bottle filling machine for P5,000,000. The plant engineer estimates that the machine has a useful life of five years and a salvage value of P10,000 at the end of its useful life. Compute (a) depreciation cost during the third year, (b) cumulative depreciation cost through the third year and (c) book value at the end of third year using the straight line method, sinking fund method at 8%, declining balance method, double declining balance method, and SYD method.

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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Question

20. Fahtima has purchased a bottle filling machine for P5,000,000. The plant engineer estimates that
the machine has a useful life of five years and a salvage value of P10,000 at the end of its useful life.
Compute (a) depreciation cost during the third year, (b) cumulative depreciation cost through the
third year and (c) book value at the end of third year using the straight line method, sinking fund
method at 8%, declining balance method, double declining balance method, and SYD method.

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