Problem 1: A dump truck was bought for P750,000 three years ago. It will have a salvage value of P100,000 two years from now. Using the following methods, determine bookvalue at the end of 3d year, accrued depreciation at the end of 2nd year and annual depreciation cost at the end of 4 year. Show solutions for the asked years. d. Double Declining Balance MethodBOOK VALUE AT THEBEGINNING OF THE YEARYEARANNUALACCRUED DEPRECIATIONBOOK VALUE AT THE END OF THEDEPRECIATION COSTYEAR

The long term asset, when purchased, is not expensed in that year.A portion of that cost is expensed…

Problem 1: A dump truck was bought for P750,000 three years ago. It will have a salvage value of PI00,000 two years from now. Using the following methods, determine book value at the end of 3d year, accrued depreciation at the end of 2d year and annual depreciation cost at the end of 4 year. Show solutions for the asked years.

Problem 1: A dump truck was bought for P750,000 three years ago. It will have a salvage value of PI00,000 two years from now. Using the following methods, determine book value at the end of 3d year, accrued depreciation at the end of 2d year and annual depreciation cost at the end of 4 year. Show solutions for the asked years.

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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Question

Problem 1: A dump truck was bought for P750,000 three years ago. It will have a salvage value of P100,000 two years from now. Using the following methods, determine book
value at the end of 3d year, accrued depreciation at the end of 2nd year and annual depreciation cost at the end of 4 year. Show solutions for the asked years.

d. Double Declining Balance Method
BOOK VALUE AT THE
BEGINNING OF THE YEAR
YEAR
ANNUAL
ACCRUED DEPRECIATION
BOOK VALUE AT THE END OF THE
DEPRECIATION COST
YEAR

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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation

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