An industrial plant bought a generator set for P 90,000. Other expenses including installation amounted to P 10,000. The Generator set is to have a life of 17 years with a salvage value at during the 13th years and the book value at the end of 13 years by (a) Declining balance m

An industrial plant bought a generator set for P 90,000. Other expenses including installation amounted to P 10,000. The Generator set is to have a life of 17 years with a salvage value at during the 13th years and the book value at the end of 13 years by (a) Declining balance m

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

Section: Chapter Questions

Problem 1PS

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A new engine was installed by a textile plant at a cost of P353,000 and projected to have a useful life of 14 years. At the end of the useful life, it is estimated to have a salvage value of 31,000. Determine the annual cost if interest is 17% compounded semi-annually.
E. Sum of the Year's Digit Method Problem: A structure costs P120,000. It is estimated to have a life of 5 years, with a salvage value at the end of its life of P1,000. Determine the book value at the end of each year of life. Use the sum- of-the-years-digit method. (Make a table in Microsoft Excel)
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1
A machine was purchased for P100,000 and has a salvage value of P20,000. What is the book value on its 4th year if the economic life is 10 years? Use SYD Method.
An industrial plant bought a generator set for P90,000. 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 P5,000. Determine the depreciation charge during the 13th year and the book value at the end of 13 years by the (a) declining balance method (b) SLM (c) sinking fund method if i=4% and (d) SYD method.
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