A factory equipment has an initial cost of Php200,000.00. Its salvage value after 10 years is Php20,000.00. As a percentage of the initial cost, what is the straight line depreciation rate of the equipment?

A factory equipment has an initial cost of Php200,000.00. Its salvage value after 10 years is Php20,000.00. As a percentage of the initial cost, what is the straight line depreciation rate of the equipment?

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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Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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