A factory has decided to purchase some new equipment for P650, 000. The equipment will be kept for 10 years before being sold. The estimated salvage value for depreciation purposes is to be P45, 000. Using declining balance method, what is the depreciation on the 5th year? a.) P 52, 553 b.) P 40, 446 c.) P 50, 000 d.) P 45, 000
A factory has decided to purchase some new equipment for P650, 000. The equipment will be kept for 10 years before being sold. The estimated salvage value for depreciation purposes is to be P45, 000. Using declining balance method, what is the depreciation on the 5th year? a.) P 52, 553 b.) P 40, 446 c.) P 50, 000 d.) P 45, 000
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 3CE
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Question
A factory has decided to purchase some new equipment for P650, 000. The equipment will be kept for 10 years before being sold. The estimated salvage value for
a.) P 52, 553
b.) P 40, 446
c.) P 50, 000
d.) P 45, 000
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