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) double declining balance method, (c) sinking fund method at 12% and
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) double declining balance method, (c) sinking fund method at 12% and
Chapter1: Making Economics Decisions
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Transcribed Image Text:3. 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) double declining balance method,
(c) sinking fund method at 12% and
(d) SYD method.
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