s? Money is worth 12% per annum. Tabu
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:3. A company purchased an equipment costing $60,000. The equipment has guaranteed
useful life of 16 years with salvage value of $6,000. Using sinking fund method, what is
the book value of the equipment after 12 years? Money is worth 12% per annum. Tabulate
the annual depreciation amounts and the book value of the equipment at the end of each
year.
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