7. A corporation purchased equipment for P53,000.00 and paid P1,500 for freight and delivery charges to the job site. The equipment has a normal life of 10 years with a trade-in value of P5,000.00 against the purchase of a new equipment at the end of the life. Determine the annual depreciation cost by sinking fund method at 6% interest rate.
7. A corporation purchased equipment for P53,000.00 and paid P1,500 for freight and delivery charges to the job site. The equipment has a normal life of 10 years with a trade-in value of P5,000.00 against the purchase of a new equipment at the end of the life. Determine the annual depreciation cost by sinking fund method at 6% interest rate.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:7. A corporation purchased equipment for P53,000.00 and paid P1,500 for freight
and delivery charges to the job site. The equipment has a normal life of 10 years
with a trade-in value of P5,000.00 against the purchase of a new equipment at the
end of the life. Determine the annual depreciation cost by sinking fund method at
6% interest rate.
8. An equipment was bought for P30,000 six years ago. It will have a salvage value
of P3,000 four years from now. It is sold now for P8,000. What is the total
depreciation and the book value now? Use Sinking Fund Method at 6%?
9. An equipment cost P7,350 has a life of 8 years and has a salvage value of P350
at the end of 8 years. Determine its book value at the end of 4 years using
Constant-Percentage of Declining Value..
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