Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![1. A Machine costs P80,000 and an estimated life of 10 years with a salvage value of P5,000. What is the book value
after 5 years using the following methodology?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff5e3decc-0551-442d-a79d-0740903f474c%2Fa80cb05d-2ba0-4d24-946f-5ad4ae4c9f27%2Fbm3qytj_processed.png&w=3840&q=75)
Transcribed Image Text:1. A Machine costs P80,000 and an estimated life of 10 years with a salvage value of P5,000. What is the book value
after 5 years using the following methodology?
![d. Double Declining Balance Method. BV3=P26,214.40
e. Sum of the Years Digit Method. BV;=P25,454.55
f. Service-Output Method. Assuming that the total service of the machine is 1,497,600 hours and the number of working
days per year is 260 days. What is the book value after 4 years if the machine production time a is 24 hours?
BV,=P79,687.38](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff5e3decc-0551-442d-a79d-0740903f474c%2Fa80cb05d-2ba0-4d24-946f-5ad4ae4c9f27%2F1dwal4t_processed.png&w=3840&q=75)
Transcribed Image Text:d. Double Declining Balance Method. BV3=P26,214.40
e. Sum of the Years Digit Method. BV;=P25,454.55
f. Service-Output Method. Assuming that the total service of the machine is 1,497,600 hours and the number of working
days per year is 260 days. What is the book value after 4 years if the machine production time a is 24 hours?
BV,=P79,687.38
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