A consortium of international communications companies contracted for the purchase and installation of a fiber optic cable linking two major Asian cities at a total cost of P1,185,035. Freight and installation charges at 11.332% of the above total contract price with salvage value of 12.877% of the first cost. The fiber optic cable is estimated to last for 51 years. Using the Sum of the Years-Digits method of depreciation, determine the following: A.Depreciation on the 25th year. B.Total depreciation after 30 years. C.Book value after 35 years. (Please provide detailed solution not in excell, thank you in advance)
A consortium of international communications companies contracted for the purchase and installation of a fiber optic cable linking two major Asian cities at a total cost of P1,185,035. Freight and installation charges at 11.332% of the above total contract price with salvage value of 12.877% of the first cost. The fiber optic cable is estimated to last for 51 years. Using the Sum of the Years-Digits method of depreciation, determine the following: A.Depreciation on the 25th year. B.Total depreciation after 30 years. C.Book value after 35 years. (Please provide detailed solution not in excell, thank you in advance)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A consortium of international communications companies contracted for the purchase and installation of a fiber optic cable linking two major Asian cities at a total cost of P1,185,035. Freight and installation charges at 11.332% of the above total contract price with salvage value of 12.877% of the first cost. The fiber optic cable is estimated to last for 51 years. Using the Sum of the Years-Digits method of depreciation , determine the following:
A.Depreciation on the 25th year.
B.Total depreciation after 30 years.
C.Book value after 35 years.
(Please provide detailed solution not in excell, thank you in advance)
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