Answer, box the final answer use Pesos sign symbol 3. An asset cost Php 18,000 and had an estimated net salvage value of Php 650 and an estimatedservice life of 36000 hours. How much is the depreciation charge after 1st year if it is used for a totalof 4000 hours?

Depreciation charge is the value of the asset that is reduced due to wear and tear and use of the…

Answered: 3. An asset cost Php 18,000 and had an…

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

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4. A machine costs 2,500,000. At the end of its economic life of five years, its salvage value is Php 800,000. Using the Sum of the Years Digit Method of Depreciation, what will be its book value for the first year?Prepare a depreciation Schedule.
An asset is purchased for Php50,000. The salvage value in 25 years is Php100,00. What are the depreciation in the first three years using straight line method?
3. An asset initially costs P55,000.00 and a salvage value P5,000.00 after 11 years. What is the book value after eight years using straight-line depreciation method?
An equipment costing Php 750,000 has a life expectancy of 6 years. Using the sum-of-the–year’s digit method of depreciation, what must be its salvage value such that its depreciation charge at the fourth year is Php 50,000? Solve show solution.
5. What is the ARR of a project investment of 1 million pesos of machinery with a life of 10 years and will generate profits of P250, 000? Straight line method is used in computing depreciation.
3. An equipment with a price of P650,000, has an economic life of 5 years and a salvage value of P 150, 000. The cost of money is 12% per year. Compute the first year depreciation using the double Declining Balance Method.
1. An equipment costs P100,000 with a salvage value of P5,000 at the end of 10 years. Calculate the annual depreciation cost by: a) SLDM b) SFDM at 4% interest
An equipment has a first cost of Php20,000 and has a salvage value of Php2,000 after 10 years. What is the depreciation after 3 years using declining balance method?
A construction equipment costs 700,000 pesos and will have a salvage value of 30% of its original cost when retired at the end of 4 years. What is the first year’s depreciation cost? Use sum of years digit method.
6. A machine costs Php 400,000 with a salvage value of 200,000. Life of it is six years. In the first year, 4000 hours. In the second year, 6000 hours and 8000 hours in the third year. The expected flow of the machine is 38000 hours in six years. What is the depreciation at the end of the second year?
A bulldozer has an initial cost of Php 2,000,000. Its salvage value after 12 years is Php 175,000. As a percentage of the initial cost, what is the straight- line depreciation rate of the equipment? O 7.6041% O 6.6041% O 8.6041% O 5.6041%
A piece of machinery costs P50,000 and has an anticipated P8,000 salvage value at the end of its six-year depreciable life. What is its depreciated value at the end of 4 years? Use sum-of-years digits depreciation.

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3. An asset cost Php 18,000 and had an estimated net salvage value of Php 650 and an estimated service life of 36000 hours. How much is the depreciation charge after 1st year if it is used for a total of 4000 hours?