A. Determine the annual cost of depreciation using Straight Line and Sinking Fund method if the equipment life is expected to reach 10 years and have a salvage value of P5,000. Assume a fund with a compound interest rate of 5%. B. Determine the depreciation amount at year 7 using Declining Balance, Double Declining Balance, and SYD Method.
A. Determine the annual cost of depreciation using Straight Line and Sinking Fund method if the equipment life is expected to reach 10 years and have a salvage value of P5,000. Assume a fund with a compound interest rate of 5%. B. Determine the depreciation amount at year 7 using Declining Balance, Double Declining Balance, and SYD Method.
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
Related questions
Question
A heavy equipment has been newly purchased by ML Bangbang Construction. The said equipment originally cost P65,000. It also costs the dealer P2,000 to transport the unit to the contractor's site. Another P3,000 have been added for the installation of the equipment.
A. Determine the annual cost of depreciation using Straight Line and Sinking Fund method if the equipment life is expected to reach 10 years and have a salvage value of P5,000. Assume a fund with a compound interest rate of 5%.
B. Determine the depreciation amount at year 7 using Declining Balance, Double Declining Balance, and SYD Method.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, civil-engineering and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Structural Analysis](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781337630931/9781337630931_smallCoverImage.jpg)
![Structural Analysis (10th Edition)](https://www.bartleby.com/isbn_cover_images/9780134610672/9780134610672_smallCoverImage.gif)
Structural Analysis (10th Edition)
Civil Engineering
ISBN:
9780134610672
Author:
Russell C. Hibbeler
Publisher:
PEARSON
![Principles of Foundation Engineering (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781337705028/9781337705028_smallCoverImage.gif)
Principles of Foundation Engineering (MindTap Cou…
Civil Engineering
ISBN:
9781337705028
Author:
Braja M. Das, Nagaratnam Sivakugan
Publisher:
Cengage Learning
![Structural Analysis](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781337630931/9781337630931_smallCoverImage.jpg)
![Structural Analysis (10th Edition)](https://www.bartleby.com/isbn_cover_images/9780134610672/9780134610672_smallCoverImage.gif)
Structural Analysis (10th Edition)
Civil Engineering
ISBN:
9780134610672
Author:
Russell C. Hibbeler
Publisher:
PEARSON
![Principles of Foundation Engineering (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781337705028/9781337705028_smallCoverImage.gif)
Principles of Foundation Engineering (MindTap Cou…
Civil Engineering
ISBN:
9781337705028
Author:
Braja M. Das, Nagaratnam Sivakugan
Publisher:
Cengage Learning
![Fundamentals of Structural Analysis](https://www.bartleby.com/isbn_cover_images/9780073398006/9780073398006_smallCoverImage.gif)
Fundamentals of Structural Analysis
Civil Engineering
ISBN:
9780073398006
Author:
Kenneth M. Leet Emeritus, Chia-Ming Uang, Joel Lanning
Publisher:
McGraw-Hill Education
![Sustainable Energy](https://www.bartleby.com/isbn_cover_images/9781337551663/9781337551663_smallCoverImage.gif)
![Traffic and Highway Engineering](https://www.bartleby.com/isbn_cover_images/9781305156241/9781305156241_smallCoverImage.jpg)
Traffic and Highway Engineering
Civil Engineering
ISBN:
9781305156241
Author:
Garber, Nicholas J.
Publisher:
Cengage Learning