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Determine the accumulated depreciation and book value at the end of 8th year using sinking fund if interest is 12%.

Determine the accumulated depreciation and book value at the end of 8th year using sinking fund if interest is 12%.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company bought a machine for BD 250,000 which has a useful life of 10 years and can be sold for BD50,000 at the end of its useful life. In addition, the cost of installing the machine is BD25,000 while the cost of dismantling is BD 7,500. Determine the accumulated depreciation and book value at the end of 8th year using sinking fund if interest is 12%. O a. At the end of Year 8 the Book Value of Machine is BD 200,551.44 and the Accumulated Depreciation is BD 220,948.56. O b. At the end of Year 8 the Book Value of Machine is BD 112,044 and the Accumulated Depreciation is BD 162,956. Oc. At the end of Year 8 the Book Value of Machine is BD 100,551.44 and the Accumulated Depreciation is BD 115,948.56. O d. At the end of Year 8 the Book Value of Machine is BD 130,551.44 and the Accumulated Depreciation is BD 170,948.56.
Transcribed Image Text:A company bought a machine for BD 250,000 which has a useful life of 10 years and can be sold for BD50,000 at the end of its useful life. In addition, the cost of installing the machine is BD25,000 while the cost of dismantling is BD 7,500. Determine the accumulated depreciation and book value at the end of 8th year using sinking fund if interest is 12%. O a. At the end of Year 8 the Book Value of Machine is BD 200,551.44 and the Accumulated Depreciation is BD 220,948.56. O b. At the end of Year 8 the Book Value of Machine is BD 112,044 and the Accumulated Depreciation is BD 162,956. Oc. At the end of Year 8 the Book Value of Machine is BD 100,551.44 and the Accumulated Depreciation is BD 115,948.56. O d. At the end of Year 8 the Book Value of Machine is BD 130,551.44 and the Accumulated Depreciation is BD 170,948.56.
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