An industrial plant bought a generator set for P 90,000. Other expenses including installation amounted to P10,000. The generator set is to have a life of 17 years with a salvage value at the end of life of P 5,000. Determine the depreciation charge during the 13th year and the book value at the end of 13 years by the ff method: a. Declining balance method h. Double declining balance method

An industrial plant bought a generator set for P 90,000. Other expenses including installation amounted to P10,000. The generator set is to have a life of 17 years with a salvage value at the end of life of P 5,000. Determine the depreciation charge during the 13th year and the book value at the end of 13 years by the ff method: a. Declining balance method h. Double declining balance method

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

2. Determine the depreciation charge

An industrial plant bought a generator set for P 90,000. Other expenses including installation
amounted to P10,000. The generator set is to have a life of 17 years with a salvage value at the
end of life of P 5,000.
Determine the depreciation charge during the 13th year and the book value at the end of 13 years
by the ff method:
a. Declining balance method
b. Double declining balance method

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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