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 SHOW COMPLETE SOLUTION -SL Method -SF Method at 10% -SYD Method

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A: Thanks for your question. Bartleby's Guideline: “Since you have posted a question with multiple…

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