Answered: Sinking Fund Method Given: FC =…

Sinking Fund Method Given: FC = 2,000,000.00 pesos SV = 300,000.00 pesos i = 12.00% n = 9 years a. Annual depreciation = ? b. Total depreciation after 6 years= ? c. Book value at year 7 = ?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Sinking Fund Method
Given:
FC = 2,000,000.00 pesos
SV = 300,000.00 pesos
i = 12.00%
n = 9 years
a. Annual depreciation = ?
b. Total depreciation after 6 years= ?
c. Book value at year 7 = ?

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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