4) A contractor imported a bulldozer paying P500k to the manufacturer, freight & insurance charges amounted to P18k, customs & brokers fee P10k, permits & other exp P25k. If the contractor estimates the life of the bulldozer to be 20 years with salvage value of P50k, determine depreciation for year 9 and book value at the end of year 9 using Straight line and Matheson Method.
4) A contractor imported a bulldozer paying P500k to the manufacturer, freight & insurance charges amounted to P18k, customs & brokers fee P10k, permits & other exp P25k. If the contractor estimates the life of the bulldozer to be 20 years with salvage value of P50k, determine
5) A coal mining company has owned a mine for the past 5 years. During this time the following tonnage of ore has been removed each year: 25k, 32k, 36k, 30k & 28k tons. The mine is estimated to contain a total of 500k tons of coal. The initial cost of the mine is P12M. If the company has a gross income for this coal of P220 per ton for the first 2 years, and P300 per ton for the last 3 years, a) determine the depletion charge for each year using gross income method, and b) compute for the % of the initial cost that has been written off in the five years.
6) A drilling machine may be used to dig ditches. The contractor purchased it for P200k & estimates that it will be able to dig 750k meters during its life and he expects to receive 10% as scrap value when he sells it. What if during a certain year he used the machine to dig 150k meters of trench, determine depreciation cost for that year.
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