Please answer this with complete and clear solution. AEC purchased an equipment for its manufacturing plant that costs PhP 3 750 000. It is estimated to have a useful life of 20 years; scrap value of PhP 375 000, production of 12 345 678 units and working hours of 100 000 hours. The company uses the equipment for 7 884 hours and produced 876 543 units on the first year and 7 883 hours and produced 987 654 units on the second year. Solve for the following:
Please answer this with complete and clear solution. AEC purchased an equipment for its manufacturing plant that costs PhP 3 750 000. It is estimated to have a useful life of 20 years; scrap value of PhP 375 000, production of 12 345 678 units and working hours of 100 000 hours. The company uses the equipment for 7 884 hours and produced 876 543 units on the first year and 7 883 hours and produced 987 654 units on the second year. Solve for the following:
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
Related questions
Question
Please answer this with complete and clear solution.
AEC purchased an equipment for its manufacturing plant that costs PhP 3 750 000. It is estimated to have a useful life of 20 years; scrap value of PhP 375 000, production of 12 345 678 units and working hours of 100 000 hours. The company uses the equipment for 7 884 hours and produced 876 543 units on the first year and 7 883 hours and produced 987 654 units on the second year. Solve for the following:
Transcribed Image Text:Total Depreciation after the 1st year (Service Output Method)
a. P 251,250.41
O b.
P 239,624.96
O c. P 123,151.47
O d. P 250,736.19
Book Value at the end of the 2nd year (Service Output Method)
a. P 3,240,375.10
O b. P 3,264,716.90
O c. P 3,465,159.03
O d. P 3,530,939.80
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Similar questions
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education