An Industrial Plant bought a generator set for 90000, other expenses including installation amounted to 10000. The generator is to have 17 years with a salvage value at the end of life of 5000. Dtermine the book value at the end of 12 years by the following method;   Declining balance method A. 10,118  B. 12,068 C. 14,393 D. 8,483   Sinking fund method at 12% A. 45,529 B. 59,860 C. 53,100 D. 65,896

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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An Industrial Plant bought a generator set for 90000, other expenses including installation amounted to 10000. The generator is to have 17 years with a salvage value at the end of life of 5000. Dtermine the book value at the end of 12 years by the following method;

 

Declining balance method

A. 10,118 

B. 12,068

C. 14,393

D. 8,483

 

Sinking fund method at 12%

A. 45,529

B. 59,860

C. 53,100

D. 65,896

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