A contractor imported a bulldozer for his job, paying Ph 250000 to the manufacturer. Freight and insurance charges amounted to Php 18000; customs, broker's fees and arrastre services, Php 850o; taxes, permits and other expenses, Php 25000. If the contractor estimates the life of the bulldozer to be 10 years with salvage value of Php 20000, determine the book value at the end of 6 years, using a. Straight-line Formula b. Sinking Fund Formula at 8%

A contractor imported a bulldozer for his job, paying Ph 250000 to the manufacturer. Freight and insurance charges amounted to Php 18000; customs, broker's fees and arrastre services, Php 850o; taxes, permits and other expenses, Php 25000. If the contractor estimates the life of the bulldozer to be 10 years with salvage value of Php 20000, determine the book value at the end of 6 years, using a. Straight-line Formula b. Sinking Fund Formula at 8%

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 2E

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Question

A contractor imported a bulldozer for his job, paying Ph 250000 to the manufacturer. Freight and insurance
charges amounted to Php 18000; customs, broker's fees and arrastre services, Php 8500; taxes, permits and
other expenses, Php 25000. If the contractor estimates the life of the bulldozer to be 10 years with salvage
value of Php 20000, determine the book value at the end of 6 years, using
а.
Straight-line Formula
b. Sinking Fund Formula at 8%

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