AEC purchased an equipment for its manufacturing plant that costs PhP 3 750 000. It is estimated to have a useful life of 20 years; scrap value of PhP 375 000, production of 12 345 678 units and working hours of 100 000 hours. The company uses the equipment for 7 884 hours and produced 876 543 units on the first year and 7 883 hours and produced 987 654 units on the second year. Solve for the following: Book value at the end of the 2nd year (Declining Balance Method)O a. P 2,978,730.88O b. P 3,047,951.49c. P 3,115,169.58O d. P 2,963,755.21Book Value at the end of the 2nd year (Double Declining Balance Method)O a. P 3,037,500.00O b. P 3,539,100.00O c. P 2,573,600.00O d. P 3,515,900.00 Book Value at the end of the 1st year (Sinking fund Method @ i=8%)O a. P 3,151,599.44O b. P 3,676,248..80O c. P 3,246,195,72O d. P 3,354,278.76Book Value at the end of the 2nd year (Sum of Years Digit Method)O a. P 2,949,946.65O b. P 3,012,069.53O c. P 3,123,214.29O d. P 3,345,866.98

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Answered: AEC purchased an equipment for its…

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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AEC purchased an equipment for its manufacturing plant that costs PhP 3 750 000. It is estimated to have a useful life of 20 years; scrap value of PhP 375 000, production of 12 345 678 units and working hours of 100 000 hours. The company uses the equipment for 7 884 hours and produced 876 543 units on the first year and 7 883 hours and produced 987 654 units on the second year. Solve for the following:

Book value at the end of the 2nd year (Declining Balance Method)
O a. P 2,978,730.88
O b. P 3,047,951.49
c. P 3,115,169.58
O d. P 2,963,755.21
Book Value at the end of the 2nd year (Double Declining Balance Method)
O a. P 3,037,500.00
O b. P 3,539,100.00
O c. P 2,573,600.00
O d. P 3,515,900.00

Book Value at the end of the 1st year (Sinking fund Method @ i=8%)
O a. P 3,151,599.44
O b. P 3,676,248..80
O c. P 3,246,195,72
O d. P 3,354,278.76
Book Value at the end of the 2nd year (Sum of Years Digit Method)
O a. P 2,949,946.65
O b. P 3,012,069.53
O c. P 3,123,214.29
O d. P 3,345,866.98

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