Solid Builders Corporation purchased a transport mixer for P984 000.00. This equipment is to be depreciated using the Matheson formula, estimated life is seven years with a salvage value of P81 000.00. After five years of use, the mixer is overhauled at a cost of P250,000.00, which results in the extension of its useful life by another three years. Assuming the salvage value did not change;
Solid Builders Corporation purchased a transport mixer for P984 000.00. This equipment is to be depreciated using the Matheson formula, estimated life is seven years with a salvage value of P81 000.00. After five years of use, the mixer is overhauled at a cost of P250,000.00, which results in the extension of its useful life by another three years. Assuming the salvage value did not change;
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 11PA: Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and...
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Solid Builders Corporation purchased a transport mixer for P984 000.00. This equipment is to be
find the depreciation charge and (Ans. P60,240.1)
the book value for the eighth year. (Ans. P155,756.89)
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