A coin-making machine costing P200,000 has a salvage value of P20,000 at theend of its economic life of 5 years. The schedule of the production is as follows:YearNo. of coins1100,000280,00060,00040,0003420,000a.) Determine the yearly depreciation until the 3rd year.b.) Determine the total depreciation until the end of the 3rd year.

Given the cost of machine = P200,000 Salvage value = P20,000 Economic life = 5 years

A coin-making machine costing P200,000 has a salvage value of P20,000 at the end of its economic life of 5 years. The schedule of the production is as follows: Year No. of coins 100,000 80,000 60,000 40,000 20,000 a.) Determine the yearly depreciation until the 3rd year. b.) Determine the total depreciation until the end of the 3rd year. 12345

A coin-making machine costing P200,000 has a salvage value of P20,000 at the end of its economic life of 5 years. The schedule of the production is as follows: Year No. of coins 100,000 80,000 60,000 40,000 20,000 a.) Determine the yearly depreciation until the 3rd year. b.) Determine the total depreciation until the end of the 3rd year. 12345

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A coin-making machine costing P200,000 has a salvage value of P20,000 at the
end of its economic life of 5 years. The schedule of the production is as follows:
Year
No. of coins
1
100,000
2
80,000
60,000
40,000
3
4
20,000
a.) Determine the yearly depreciation until the 3rd year.
b.) Determine the total depreciation until the end of the 3rd year.

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