Mr. Badoy acquires a new company asset for fabrication purposes. Acquisition costs 1,500,000 pesos plus 15% transportation cos 12% taxes and duties, and 10% commissioning and installation cost. If the working life of the machine is 15 yrs and the salvage value is 20% of the total first cost and money grows for 12% interest compounded annually compute the Book value at years 8,10 and 12 using SLM, SFM, DBM, ĎDBM, and SYD..

Mr. Badoy acquires a new company asset for fabrication purposes. Acquisition costs 1,500,000 pesos plus 15% transportation cos 12% taxes and duties, and 10% commissioning and installation cost. If the working life of the machine is 15 yrs and the salvage value is 20% of the total first cost and money grows for 12% interest compounded annually compute the Book value at years 8,10 and 12 using SLM, SFM, DBM, ĎDBM, and SYD..

Name: Mr. Badoy acquires a new company asset forfabrication purposes. Acqui
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Description: Mr. Badoy acquires a new company asset forfabrication purposes. Acquisition costs1,500,000 pesos plus 15% transportation cost,12% taxes and duties, and 10%commissioning and installation cost. If theworking life of the machine is 15 yrs and thesalvag

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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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Question

Mr. Badoy acquires a new company asset for
fabrication purposes. Acquisition costs
1,500,000 pesos plus 15% transportation cost,
12% taxes and duties, and 10%
commissioning and installation cost. If the
working life of the machine is 15 yrs and the
salvage value is 20% of the total first cost and
money grows for 12% interest compounded
annually compute the Book value at years
8,10 and 12 using SLM, SFM, DBM, DDBM,
and SYD..

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