A broadcasting corporation purchased an equipment for P160,000 and paid P12,000 for freight and delivery charges to the job site. The equipment has a normal life of 10 years with a trade in value of P10,000 against the purchase of a new equipment at the end of the life. Determine the annual depreciation cost by the sinking fund method. Assume interest at 6.5% compounded annually. O P17,343.78 O P15,562.66 P12,103.46 P10,434.55

A broadcasting corporation purchased an equipment for P160,000 and paid P12,000 for freight and delivery charges to the job site. The equipment has a normal life of 10 years with a trade in value of P10,000 against the purchase of a new equipment at the end of the life. Determine the annual depreciation cost by the sinking fund method. Assume interest at 6.5% compounded annually. O P17,343.78 O P15,562.66 P12,103.46 P10,434.55

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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33-34
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Air handling equipment that costs P12, 000 has a life of eight years with a P2, 000 salvage value. What is the Sinking fund depreciation amount for each year? Assume interest at 4.5% compounded annually.
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14.
Give the calculations regarding the sinking fund method of depreciation with an interest rate of 12% compounded annually. Find the book value until 10th year and create a table regarding to depreciation. FC= 100,000 SV= 20, 000 n= 8years i=12%