A piece of equipment has a first cost of P500,000 and the cost of installation is P30,000. If the salvage value is 10% equipment cost at the end of its useful life of 5 years. Compute the book value at the end of 3rd year. Using: Straight Line Method Sum of Years Digit Method Sinking Fund Method (if money is worth 6% per annum) Declining Balance Method Using Double Declining Balance Method
A piece of equipment has a first cost of P500,000 and the cost of installation is P30,000. If the salvage value is 10% equipment cost at the end of its useful life of 5 years. Compute the book value at the end of 3rd year. Using: Straight Line Method Sum of Years Digit Method Sinking Fund Method (if money is worth 6% per annum) Declining Balance Method Using Double Declining Balance Method
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A piece of equipment has a first cost of P500,000 and the cost of installation is P30,000. If the salvage value is 10% equipment cost at the end of its useful life of 5 years. Compute the book value at the end of 3rd year.
Using:
Straight Line Method - Sum of Years Digit Method
- Sinking Fund Method (if money is worth 6% per annum)
- Declining Balance Method
- Using Double Declining Balance Method
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