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Problem 3: The initial cost of a paint sand mill, including its installation is P 800,000. The  depreciable life of this machine is 10 years with an estimated salvage value of P 50,000.  Using SYD Method  -Compute the depreciation charge on the 6th year.  -Compute the total depreciation after 6 years.  -Compute the book value after 6 years.

Problem 3: The initial cost of a paint sand mill, including its installation is P 800,000. The  depreciable life of this machine is 10 years with an estimated salvage value of P 50,000.  Using SYD Method  -Compute the depreciation charge on the 6th year.  -Compute the total depreciation after 6 years.  -Compute the book value after 6 years.

Essentials Of Investments
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
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Problem 3: The initial cost of a paint sand mill, including its installation is P 800,000. The  depreciable life of this machine is 10 years with an estimated salvage value of P 50,000.  Using SYD Method 

-Compute the depreciation charge on the 6th year. 

-Compute the total depreciation after 6 years. 

-Compute the book value after 6 years. 

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10:21 PM | 9.7KB/s ACTIVITY # 3 Solve the following problems. Show clean and complete details of your work for each number. 1. Compute the annual depreciation charge. 2. Compute the total depreciation after 6 years. 3. Compute the book value after 6 years. Problem 1: The initial cost of a paint sand mill, including its installation is P 800,000. The depreciable life of this machine is 10 years with an estimated salvage value of P 50,000. Using SL Method 1. Compute the annual depreciation charge. 2. Compute the total depreciation after 6 years. 3. Compute the book value after 6 years. 4G+ IN Problem 2: The initial cost of a paint sand mill, including its installation is P 800,000. The depreciable life of this machine is 10 years with an estimated salvage value of P 50,000. Using SF Method at 6%. 11% 1. Compute the depreciation charge on the 6th year. 2. Compute the total depreciation after 6 years. 3. Compute the book value after 6 years. Problem 3: The initial cost of a paint sand mill, including its installation is P 800,000. The depreciable life of this machine is 10 years with an estimated salvage value of P 50,000. Using SYD Method 1. SL Method 2. SF Method at 10% 3. SYD Method Problem 4: A heavy planner was purchased 12 years ago for P 50,000 with no salvage value. As the life of the planner was 20 years, a depreciation reserve has been provided on that basis. Now the owner wishes to replace the old planner by a newly designed planner with several advantages. The old planner can sell for P 10,000. If the new planner costs P 70,000, how much new capital will be required to make the purchase if the depreciation is computed using Problem 5: An equipment has a first cost of P 7,000, has a life of 8 years and a salvage value of "x". Compute the value of "x" if the book value of the equipment at the end of 4th year is P 2,291.11. Use SYD Method. 1. SL Method 2. SF Method at 6% Problem 6: ZYK Corporation makes its policy that for a new piece of equipment purchased, the annual depreciation should not exceed 20% of the first cost at any time without salvage value. Determine the length of service necessary for the equipment using 1
Transcribed Image Text:10:21 PM | 9.7KB/s ACTIVITY # 3 Solve the following problems. Show clean and complete details of your work for each number. 1. Compute the annual depreciation charge. 2. Compute the total depreciation after 6 years. 3. Compute the book value after 6 years. Problem 1: The initial cost of a paint sand mill, including its installation is P 800,000. The depreciable life of this machine is 10 years with an estimated salvage value of P 50,000. Using SL Method 1. Compute the annual depreciation charge. 2. Compute the total depreciation after 6 years. 3. Compute the book value after 6 years. 4G+ IN Problem 2: The initial cost of a paint sand mill, including its installation is P 800,000. The depreciable life of this machine is 10 years with an estimated salvage value of P 50,000. Using SF Method at 6%. 11% 1. Compute the depreciation charge on the 6th year. 2. Compute the total depreciation after 6 years. 3. Compute the book value after 6 years. Problem 3: The initial cost of a paint sand mill, including its installation is P 800,000. The depreciable life of this machine is 10 years with an estimated salvage value of P 50,000. Using SYD Method 1. SL Method 2. SF Method at 10% 3. SYD Method Problem 4: A heavy planner was purchased 12 years ago for P 50,000 with no salvage value. As the life of the planner was 20 years, a depreciation reserve has been provided on that basis. Now the owner wishes to replace the old planner by a newly designed planner with several advantages. The old planner can sell for P 10,000. If the new planner costs P 70,000, how much new capital will be required to make the purchase if the depreciation is computed using Problem 5: An equipment has a first cost of P 7,000, has a life of 8 years and a salvage value of "x". Compute the value of "x" if the book value of the equipment at the end of 4th year is P 2,291.11. Use SYD Method. 1. SL Method 2. SF Method at 6% Problem 6: ZYK Corporation makes its policy that for a new piece of equipment purchased, the annual depreciation should not exceed 20% of the first cost at any time without salvage value. Determine the length of service necessary for the equipment using 1
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