purchased an equipment for its manufacturing plant that costs PHP 3, 750 000 + PHP 10,000 x (01). It is estimated to have a useful life of 20 years; scrap value of PHP 375, 000, production of 12,345,678 + 15,000 x (01) units and working hours of 100,000 + 1,500 hours x (01). The company uses the equipment for 7,884 hours and produced 876,543 units on the first year and 7,883 hours and produced 987,654 units on the second year. Solve for the following:  d. Sinking Fund Method (i=8%) - Book value at the end of the 1st year Kindly provide a COMPLETE and CLEAR soluti

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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AEC purchased an equipment for its manufacturing plant that costs PHP 3, 750 000 + PHP 10,000 x (01). It is estimated to have a useful life of 20 years; scrap value of PHP 375, 000, production of 12,345,678 + 15,000 x (01) units and working hours of 100,000 + 1,500 hours x (01). The company uses the equipment for 7,884 hours and produced 876,543 units on the first year and 7,883 hours and produced 987,654 units on the second year. Solve for the following: 

d. Sinking Fund Method (i=8%)
- Book value at the end of the 1st year

Kindly provide a COMPLETE and CLEAR solution.

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