A telephone company purchased a microwave radio equipment for P5,000,000. Freight and installation charges amounted to 2% of the purchased price. If the equipment shall be Depreciated over a period of 10 years with a salvage value of 6%, determine the annual depreciation charge using the straight-line method. a.Php 479,400 b.Php 451,789 c.Php 567,354 d.Php 483,387

Q: The boiler in a steam power plant costs P 25,000,000 and has a salvage value of P 850,000 at the end…

A: Straight line method :Under this method,a fixed percentage on the original cost of the asset is…

Q: A piece of equipment costs ₱355,000 including shipping, installation and taxes. The supplier assures…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: Q/ A contractor bought a construction mechanism at a price of $80,000. Records indicate that the…

A: Cost of Machine = $ 80,000 Useful life = 6 years Salvage value = $ 10,000 1. Straight Line Method…

Q: M 2: A certain organization deciaed to acquire a skte of the art production equipment that will cost…

A: solution given The cost such as shipping charge and installation cost shall be capitalized to the…

Q: a. straight line method depreciation charge: Php 6650 book value: Php 3350 b. sinking fund method at…

A: Depreciation is the reduction in the value of asset due to normal wear and tear Effluxion of time.…

Q: A telephone company purchased a microwave radio equipment for P6,000,000. Freight and installation…

A: Depreciation should always be calculated on original cost of the asset , where cost of the asset…

Q: Equipment was purchased for $156,500. Freight charges amounted to $3,500 and there was a cost of…

A: To calculate the depreciation expense using the straight-line method, we first need to determine the…

Q: At the beginning of the year Joeker Company brought machinery under a contract that required a down…

A: Interest is paid on the loan amount sanctioned. Interest amount is said to be the cost of the funds…

Q: A tax- and duty-free importation of a 30-horsepower sand mill for paint manufacturing costs P400,000…

A: Solution on next page

Q: value of P30, 000 at the end of the per iod. Compute the depreciati nd its book value after 10 years…

A: We can also find the declining depreciation by declining rate which is founded in below table and it…

Q: Angels Inc. purchases a piece of equipment for $65,000. The equipment has an expected useful life of…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: A unit of welding machine costs Php45,000 with an estimated life of 5 years. Its salvage value is…

A: Depreciation under Sinking Fund Method  Annual depreciation (A) = (Cost -Salvage Value) ×(i)(1+i)n-1

Q: A machine cost P 1,800,000.00. It has a salvage value of P 300,000.00 at the end of 5 years. If…

A: The depreciation is a method to allocate the cost of the asset over its useful life. The…

Q: insurance charges amounted to P28,000; customs and brokers fees is P8,500; taxes, permits and other…

A: Sinking fund refers to the form of a depreciation method under which it is used the finance the…

Q: To package its products, a company purchased an automatic packaging machine for P600,000. Freight,…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: The equipment is worth P56,000 with a salvage value of P15,000 at the end of 5 years. If the…

A: Cost of Equipment 56000 Less: Salvage value 15000 Depreciable value 41000 Estimated life 5…

Q: The cost of equipment is PHP 50857 and the cost of installation is PHP 35878. If the salvage value…

A: Sinking fund method of depreciation In case of sinking fund method of depreciation, a fixed…

Q: San Jose Builders imported a backhoe for his job, paying P2,500,000.00 to the manufacturer. Freight…

A: The total cost of the imported backhoe: The price paid to the manufacturer  2,500,000.00 Add:…

Q: On Jan 2, JKM Co buys a $40,000 piece of equipment paying $15,000 down and signing a 4 year note for…

A: Fixed Assets: The assets that last longer than a year is classified as fixed assets. The consumption…

Q: A piece of earth-moving equipment was purchased at a cash price of P25,000. The life of this…

A: To determine the annual depreciation of the earth-moving equipment, we can use the sinking fund…

Q: Tiffany bought a piece of equivalent for $40,000. The equipment has a useful life of 5 years ane a…

A: Answer) Calculation of Depreciation expense for Year 1 Depreciation expense for year 1 = Original…

Q: A construction contractor opted to purchase a dump truck for transportation and dumping of soil at a…

A: Purchase Price = 2,500,000 Assuming Interest rate = 10%

Q: A tax and duty free importation of a 30 horse power sand mill for paint manufacturing cost 400,000…

A: Total cost of the mill = Manufacturing cost + Bank charges arrester and brokerage cost + Foundation…

Q: An equipment was purchased by a Company at the cost of $875,000. It was depreciated for five years…

A: Depreciation: It is the gradual reduction in cost of the asset due to its normal usage, wear and…

Q: An engineer bought an equipment for P500,000. Other expenses including installations amounted to…

A: Depreciation Expense = Cost - Salvage ValueUseful Life

Q: A manufacturing system for fabricated metal products is purchased in the middle of the fiscal year…

A: Manufacturing business entity can be defined as the business were the raw materials are processed…

Q: An industrial plant bought a generator set for PHP 90,000. Other expenses including installation…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A contractor imported a bulldozer paying P650k to the manufacturer, freight expense amounted to…

A: Sinking Fund Method. An equal amount has been invested in a sinking fund for the purchase of new…

Q: A company imported a new manufacturing machine for their plant, paying P 850,000 to the…

A:

Q: A machine costs Php 300,000 with a salvage value of Php 50,000 at the end of its life of 10 years.…

A: Machine cost (C) = Php 300000 Salvage value (S) = Php 50000 n = 10 years r = 6%

Q: A company bought an equipment fee for P56,000. Other expenses including installation amounted to…

A: Depreciation: Due to usage, passes of time, obsolete and accident reduction in the value of fixed…

Q: ment costs ₱3046114 with the estimated salvage value of ₱696261 at the end of 6 years. What is the…

A: Depreciation can be found by the sinking fund method also considering as the future value required…

Q: 5. The price of a system of jockey pumps is P5,500,000. PLM decided to purchase this system and…

A: To calculate the straight-line depreciation rate for your asset, simply subtract the salvage value…

Q: A man acquired a machinery purchased for PhP 1,100,000.00 and paid for transportation charge of PhP…

A: Different methods of depreciation are  double decline method, straight-line method, units of…

Q: A telephone company purchased microwave radio equipment for P6,000,000. Freight and installation…

A: Depreciation is a charge for using the asset over its life. The depreciation is recorded as a charge…

Q: An industrial plant bought a generator set for ₱90,000. Other expenses including installation…

A: Sum-of-the-years'-digits = 1+2+3+4+5+6+7+8+9+10+11+12+13+14+15+16+17…

Q: Equipment was purchased for $60,000. Freight charges amounted to $2,800 and there was a cost of…

A: A tangible asset's cost is systematically spread out over the course of its anticipated useful life,…

Q: was sold as scrap after ne the total depreciatio

A: Depreciation: It is the expense recorded in books under the income statement. It is the amortization…