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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

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

FINANCIAL ACCOUNTING
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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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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