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A company bought an electric motor two years ago at a cash price of P 275, 000 and will lasts ten more years. It is expected that five years from now, its book value will become P 124, 500 if depreciation uses the Straight Line Formula. Find: a) the scrap value of the motor. b) the book value of the motor three years from now.

A company bought an electric motor two years ago at a cash price of P 275, 000 and will lasts ten more years. It is expected that five years from now, its book value will become P 124, 500 if depreciation uses the Straight Line Formula. Find: a) the scrap value of the motor. b) the book value of the motor three years from now.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company bought an electric motor two years ago at a cash price of P 275, 000 and will lasts ten more years. It is expected that five years from now, its book value will become P 124, 500 if depreciation uses the Straight Line Formula. Find: 
a) the scrap value of the motor. 
b) the book value of the motor three years from now. 

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