A machine was purchased at an original cost of P400,000 with a salvage value of P20,000. Life of this machine is expected to last for 6 years. It was used 4000 hours in the first year, 6000 hours in the second year, and 8000 hours on the third year. The machine is expected to last for 38,000 hours in a nerind of 6 years. Which of the following gives the depreciation at the end of the second year? -

A machine was purchased at an original cost of P400,000 with a salvage value of P20,000. Life of this machine is expected to last for 6 years. It was used 4000 hours in the first year, 6000 hours in the second year, and 8000 hours on the third year. The machine is expected to last for 38,000 hours in a nerind of 6 years. Which of the following gives the depreciation at the end of the second year? -

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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100%

Please use depreciation method

A machine was purchased at an original cost of P400,000 with a salvage value of P20,000. Life of this
machine is expected to last for 6 years. It was used 4000 hours in the first year, 6000 hours in the second
year, and 8000 hours on the third year. The machine is expected to last for 38,000 hours in a nerind of 6
years. Which of the following gives the depreciation at the end of the second year? "

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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