building has a salvage value of P1,000,00 preciation is P2,000,000 each year. e first cost of the building
building has a salvage value of P1,000,00 preciation is P2,000,000 each year. e first cost of the building
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:SITUATION: A building has a salvage value of P1,000,000 at the end of its useful life of 50 years. The
straight line depreciation is P2,000,000 each year.
3) Find the first cost of the building
4) Find the book value of the building after 25 years.
5) After how many years will the book value of the building be P71,000,000?
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