An industrial plant bought a generator set for P90,000. Other expenses including installation amounted to P10,000. The generator set is to have life of 17 years with a salvage value at the end of life of P5,000. Determine the depreciation during the 13tl year and the book value at the end of 13 years by the (a`lininc. (L) D ' 'd) SYD method.

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 P90,000. Other expenses including
installation amounted to P10,000. The
generator set is to have life of 17 years with
a salvage value at the end of life of P5,000.
Determine the depreciation during the 13th
year and the book value at the end of 13
years by the (;` olininmh
' (d) SYD method.
Expert Answer O
Step1
а)
Disclaimer:
"Since you have posted a question with
multiple sub-parts, we will solve first three
sub-parts for you. To get remaining sub-
Transcribed Image Text:Question An industrial plant bought a generator set for P90,000. Other expenses including installation amounted to P10,000. The generator set is to have life of 17 years with a salvage value at the end of life of P5,000. Determine the depreciation during the 13th year and the book value at the end of 13 years by the (;` olininmh ' (d) SYD method. Expert Answer O Step1 а) Disclaimer: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for you. To get remaining sub-
1:35 J
Step1
a)
cost of Generator = 90,000
Installation Cost = 10,000
Therefore Book Value at starting = 90,000 +
10,000 = 1,00,000
Salvage Value = 5,000
Step2
b)
Sum of useful years :
1+2+3+4+5+6+7+8+9+10+11+12+13+14+15+16
= 153
D
Book Value
Total cost
Depreciation
Depreciation
accumulated
Book Value
1 Year
Year Star
Depreciable
rate
expenses
Depreciation
year-end
2
1
1,00,000
95.000
0.111111111
10555.55556
10555.55556
89.444
3
2
89,444
95,000
0.104575163
9934.640523
20490.19608
79,510
0.098039216
29803.92157
4
3
79,510
95,000
9313.72549
70,196
4
70,196
95,000
0.091503268
8692.810458
38496.73203
61,503
61.503
95,000
0.08496732
8071.895425
46568.62745
53.431
53,431
95,000
0.078431373
7450.980392
54019.60784
45,980
0.071895425
6830.065359
8
45.980
95,000
60849.6732
39,150
9
39,150
95,000
0.065359477
6209.150327
67058.82353
32,941
10
32,941
95,000
0.058823529
5588.235294
72647.05882
27,353
4967.320261
4346.405229
3725.490196
11
10
27,353
95.000
0.052287582
77614.37908
22,386
12
11
22,386
95,000
0.045751634
81960.78431
18,039
13
12
18,039
95,000
0.039215686
85686.27451
14,314
14
13
14,314
95.000
0.032679739
3104.575163
88790.84967
11.209
15
14
11,209
95,000
0.026143791
2483.660131
91274.5098
8,725
16
15
8,725
95,000
0.019607843
1862.745098
93137.2549
6,863
17
16
6,863
95,000
0.013071895
1241.830065
94379.08497
5,621
18
17
5.621
95,000
0.006535948
620.9150327
95000
5,000
10
Deeiti
edeton
Bok e er
Tatal con Del
Bepredeonrn
Book Wl yend
?
Transcribed Image Text:1:35 J Step1 a) cost of Generator = 90,000 Installation Cost = 10,000 Therefore Book Value at starting = 90,000 + 10,000 = 1,00,000 Salvage Value = 5,000 Step2 b) Sum of useful years : 1+2+3+4+5+6+7+8+9+10+11+12+13+14+15+16 = 153 D Book Value Total cost Depreciation Depreciation accumulated Book Value 1 Year Year Star Depreciable rate expenses Depreciation year-end 2 1 1,00,000 95.000 0.111111111 10555.55556 10555.55556 89.444 3 2 89,444 95,000 0.104575163 9934.640523 20490.19608 79,510 0.098039216 29803.92157 4 3 79,510 95,000 9313.72549 70,196 4 70,196 95,000 0.091503268 8692.810458 38496.73203 61,503 61.503 95,000 0.08496732 8071.895425 46568.62745 53.431 53,431 95,000 0.078431373 7450.980392 54019.60784 45,980 0.071895425 6830.065359 8 45.980 95,000 60849.6732 39,150 9 39,150 95,000 0.065359477 6209.150327 67058.82353 32,941 10 32,941 95,000 0.058823529 5588.235294 72647.05882 27,353 4967.320261 4346.405229 3725.490196 11 10 27,353 95.000 0.052287582 77614.37908 22,386 12 11 22,386 95,000 0.045751634 81960.78431 18,039 13 12 18,039 95,000 0.039215686 85686.27451 14,314 14 13 14,314 95.000 0.032679739 3104.575163 88790.84967 11.209 15 14 11,209 95,000 0.026143791 2483.660131 91274.5098 8,725 16 15 8,725 95,000 0.019607843 1862.745098 93137.2549 6,863 17 16 6,863 95,000 0.013071895 1241.830065 94379.08497 5,621 18 17 5.621 95,000 0.006535948 620.9150327 95000 5,000 10 Deeiti edeton Bok e er Tatal con Del Bepredeonrn Book Wl yend ?
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