Power to a remote transmitting station is provided by a Diesel-electriegenerator unit. The original cost of the unit is P65,000. It costs P2,000 to ship the unit to the job site. An additional cost of P3,000 was incurred for installation. (a) Determine, the annual depreciation cost by the straight line method, if the unit has an expected life of 10 years. The salvage value of the unit at the end of its life was estimated at P5,000. (b) Determine the annual depreciation cost by the sinking fund method. Assume that the annual charge for depreciation was deposited in a fund drawing compound interest at the rate of 5%

Power to a remote transmitting station is provided by a Diesel-electriegenerator unit. The original cost of the unit is P65,000. It costs P2,000 to ship the unit to the job site. An additional cost of P3,000 was incurred for installation. (a) Determine, the annual depreciation cost by the straight line method, if the unit has an expected life of 10 years. The salvage value of the unit at the end of its life was estimated at P5,000. (b) Determine the annual depreciation cost by the sinking fund method. Assume that the annual charge for depreciation was deposited in a fund drawing compound interest at the rate of 5%

Name: Power to a remote transmitting station is provided by aDiesel-electri
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Description: Power to a remote transmitting station is provided by aDiesel-electriegenerator unit. The original cost of the unit is P65,000.It costs P2,000 to ship the unit to the job site. An additional cost ofP3,000 was incurred for installation,(a) Determine,

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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