Ten years ago, a contractor was able to purchase a crane whose capacity is 2000 tons costing ₱125 per ton. The life was estimated to be 15 years with a salvage value of 10% of the cost. At present abandoning the old crane in favor, a modern model is being considered. A market had been found for the old crane at ₱ 80,000. If the depreciation has been figured on a straight-line basis, what is the difference between the depreciation book value of the old crane and its sale value?
Ten years ago, a contractor was able to purchase a crane whose capacity is 2000 tons costing ₱125 per ton. The life was estimated to be 15 years with a salvage value of 10% of the cost. At present abandoning the old crane in favor, a modern model is being considered. A market had been found for the old crane at ₱ 80,000. If the depreciation has been figured on a straight-line basis, what is the difference between the depreciation book value of the old crane and its sale value?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ten years ago, a contractor was able to purchase a crane whose capacity is 2000 tons costing ₱125 per ton. The life was estimated to be 15 years with a salvage value of 10% of the cost. At present abandoning the old crane in favor, a modern model is being considered. A market had been found for the old crane at ₱ 80,000. If the
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