A cooling water pumping station at a manufacturing plant in Iligan City costs 30,000,000 php to construct, and it is projected to have a 25-year life with an estimated salvage value of 10% of the construction cost. Calculate the annual depreciation charge for year 10 (d10) using:
A cooling water pumping station at a manufacturing plant in Iligan City costs 30,000,000 php to construct, and it is projected to have a 25-year life with an estimated salvage value of 10% of the construction cost. Calculate the annual depreciation charge for year 10 (d10) using:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A cooling water pumping station at a manufacturing plant in Iligan City costs 30,000,000 php to construct, and it is projected to have a 25-year life with an estimated salvage value of 10% of the construction cost. Calculate the annual depreciation charge for year 10 (d10) using:
a.
b. Declining Balance Method
c. Double declining balance method
d. Sinking Fund method at 10%
e. Sum of the year's digits method
2. If the cooling water pumping station in Problem 1 will be book-
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