A MACHINE COSTS P 7,000,000.00 LAST 4 YEARS AND HAS A SALVAGE VALUE OF P 350,000. USE DELINING BALANCE METHOD AND DOUBLE DECLINING BALANC EMETHOD TO DETERMINE: A) THE DEPRECIATION CHARGES FROM YEAR 1 THROUGH 4 B) THE BOOK VALUE AT THE END OF EACH YEAR OF LIFE. C) COMPARE THE CASH FLOWS BETWEEN THE THWO METHODS

A MACHINE COSTS P 7,000,000.00 LAST 4 YEARS AND HAS A SALVAGE VALUE OF P 350,000. USE DELINING BALANCE METHOD AND DOUBLE DECLINING BALANC EMETHOD TO DETERMINE: A) THE DEPRECIATION CHARGES FROM YEAR 1 THROUGH 4 B) THE BOOK VALUE AT THE END OF EACH YEAR OF LIFE. C) COMPARE THE CASH FLOWS BETWEEN THE THWO METHODS

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A MACHINE COSTS P 7,000,000.00 LAST 4 YEARS AND HAS A SALVAGE VALUE OF P 350,000. USE DELINING BALANCE METHOD AND DOUBLE DECLINING BALANC EMETHOD
TO DETERMINE:
A) THE DEPRECIATION CHARGES FROM YEAR 1 THROUGH 4
B) THE BOOK VALUE AT THE END OF EACH YEAR OF LIFE.
C) COMPARE THE CASH FLOWS BETWEEN THE THWO METHODS

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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