certain factory has a first cost of P163,000,000 with a salvage value of P163,000 at the end of its 25-year life. Solve for its book value on the 15th year using a. Straight Line Method b. Sinking Fund Method @ i = 10% c. Declining Balance Method d. Double Declining Balance Method e. Sum of the Years Digit Method

certain factory has a first cost of P163,000,000 with a salvage value of P163,000 at the end of its 25-year life. Solve for its book value on the 15th year using a. Straight Line Method b. Sinking Fund Method @ i = 10% c. Declining Balance Method d. Double Declining Balance Method e. Sum of the Years Digit 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

Section: Chapter Questions

Problem 1PS

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1. An equipment has a first cost of P500,000 and the cost of installation is P30,000. If the salvage value is 10% equipment cost at the end of the its useful life of 5 years. Compute the book value at the end of 3rd year. Using: A. Straight Line Method B. Sum of Years Digit Method C. Sinking Fund Method (if money is worth 6% per annum) D. Declining Balance Method E. Using Double Declining Balance Method
A machine costs 425,000, lasts 8 years and has a salvage value at the end of life of P30,000. Determine the book value at the end of 4 years using,a. Straight Line Methodb. Sinking Fund Method @ i = 10%c. Declining Balance Methodd. Double Declining Balance Methode. Sum-of-the-Years-Digit Method. Note: Show detailed hand written solutions
A piece of equipment has a first cost of P500,000 and the cost of installation is P30,000. If the salvage value is 10% equipment cost at the end of its useful life of 5 years. Compute the book value at the end of 3rd year. Using: Straight Line Method Sum of Years Digit Method Sinking Fund Method (if money is worth 6% per annum) Declining Balance Method Using Double Declining Balance Method
2. A piece of specific office equipment has a first cost of Php20,000 and a salvage value of Php1000 at the end of 10 years. Determine its book value at the end of 8 years using: a. straight-line method b. sinking fund method at 4% interest c. declining-balance method d. sum of years digit method
ECONOMICS
A machine cost 75,000 and the salvage value is 15,000 after 15 years. Find, a) the depreciation by Straight Line Method if i = 15% b) the depreciation by Sinking Fund Method if i = 15% c) the depreciation charge at the end of 4th year by Declining Balance Method, Double Declining Balance Method and Sum of Years Digit Method d) the book value after 8 years by SLM, SFM, DBM, DDBM and SYDM Please follow the format in answering. 1. Given 2. Required 3. Formula used 4. Cash flow diagram/ cash flow sketch: 5. Solutions (w/ explanation)
A machine, purchased for$50,000, has a depreciable life of five years. It will havean expected salvage value of $4,500 at the end of the depreciable life. Find theyearly depreciation, Book value every year using the following methods: a. MATHESON EQUATION b. SINKING FUND METHOD ( i = 12%)
A machine costs Php 300,000 with a salvage value of Php 50,000 at the end of its life of 1O years. If money is worth 6% annually, use Sinking Fund Method and determine the total depreciation at the end of 6th year. A. Php 113,801.94 B. Php 132,300.79 C. Php 133,756.36 D. Php 123,405.94
A certain office equipment has a first cost of P 20,000 and a salvage value of P 1,000 at the end of 10 years. Determine its book value at the end of 6 years using declining balance method. 8,600.00 3,311.00 1,657.38 9,280.00 11,400.00 1,000.00
Find the book value of office equipment purchased at a cost C at the end of the nth year if it is to be depreciated by the double declining-balance method over 10 years. (Assume a salvage value of $0. Round your answer to the nearest cent.) C = $100,000, n = 9 $=
Please answer immediately. A certain equipment has a first cost of P 12,000 and a salvage value of P 500 at the end of x years. What is the value of x if the annual depreciation is P 1,567.6 using the Sinking Fund Method at 8%?
Find the capitalized cost for the following information: Note: Write a positive number, with at least one digit after the decimal point. First cost. $ 140,000 Cost at the end of year 4 260,000 Annual cost, S 52,000 Periodic costs, every 5 years, $ 108,000 Salvage value, $ 20.000 Interest rate, % 20 Answer:

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