A copying machine costs P 40,000, has a life of 4 years with a salvage value of P 5,000. The following are the production output of this machine in number of copies: For the first year, 1800 copies, second year, 2200 copies, third year, 3000 copies, and fourth year, 4000 copies. What is the depreciation charge in the second year?

A copying machine costs P 40,000, has a life of 4 years with a salvage value of P 5,000. The following are the production output of this machine in number of copies: For the first year, 1800 copies, second year, 2200 copies, third year, 3000 copies, and fourth year, 4000 copies. What is the depreciation charge in the second year?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A certain machine has a first cost of 30,000; annual costs of 6,000; a salvage value of 4,000 and a life of 10 years. Assume an interest rate of 8% What is the depreciation allowance in years 1-10 for this asset using straight line depreciation?
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Consider the following operating and maintenance costs of a new machine whose first cost is $ 86,000 with a useful life of 6 years and its salvage value is $ 14,000 whatever its age is. The interest rate is 6%, compounded annually. Find its economic life. Year 1 2 3 4 5 6 O&M Costs, $ 5,000 7,000 9,000 11,000 13,000 15,000
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A generator costs ₱500,000 and whose salvage value is ₱10,000 after 20 years. How much is the depreciation charge at the end of 12 years using SYDM, What is the total depreciation at the end of 12 years using SYDM, and What is its book value at the end of 12 years using SYDM?
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A machine bought at P420,000 has an economic life of 6 years with a salvage value of P50,000. Cost of money is 12% per year. The first year depreciation is found to be P105,714. What method of depreciation is used?
An equipment in a factory has an initial cost of Php200,000. Its salvage value after ten years is Php20,000. As a percentage of the initial cost, what is the straight-line depreciation rate of the equipment?
A Machine costs ₱80,000 and an estimated life of 10 years with a salvage value of ₱5,000. What is the book value after 5 years using the following methodology? a. Straight Line Method. BV5=₱42,500 b. Sinking Fund Method if i=9%. BV5=₱50,456.44 c. Declining Balance Method if the depreciation cost is equal to the value of i. BV5=₱49,922.57 d. Double Declining Balance Method. BV5=₱26,214.40 e. Sum of the Years Digit Method. BV5=₱25,454.5 f. Service-Output Method. Assuming that the total service of the machine is 1,497,600 hours and the number of working days per year is 260 days. What is the book value after 4 years if the machine production time a is 24 hours? BV4=₱79,687.38
A machine costs Php 800,000 with a salvage value of Php 100,000 at the end of its life of 10 years. If money is worth 4.5% annually, use Sinking Fund Method and determine the depreciation at the 5th year.
A construction equipment costs P180,000. It has a salvage value of P15,000 at the end of its life of 12 years. Find the 5th year depreciation using a constant percentage method or Matheson Method.

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