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
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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Problem 3: The initial cost of a paint sand mill, including its installation is P 800,000. The
-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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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
Solution
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