The initial cost of a paint sand mill, including its installation is P765,952. The mill will last for 25 years, and the book value is P610,117 at the end of 12 years. The interest rate is estimated to be 9.365%. If the Sinking-Fund method of depreciation is used. determine the following: A.)Total depreciation at the end of its life. B.)Book value at the end of 17 years. C.)Year at which the book value is half its original price. Please provide the detailed solution not in excel thank you.
The initial cost of a paint sand mill, including its installation is P765,952. The mill will last for 25 years, and the book value is P610,117 at the end of 12 years. The interest rate is estimated to be 9.365%. If the Sinking-Fund method of depreciation is used. determine the following: A.)Total depreciation at the end of its life. B.)Book value at the end of 17 years. C.)Year at which the book value is half its original price. Please provide the detailed solution not in excel thank you.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The initial cost of a paint sand mill, including its installation is P765,952. The mill will last for 25 years, and the book value is P610,117 at the end of 12 years. The interest rate is estimated to be 9.365%. If the Sinking-Fund method of depreciation is used. determine the following:
A.)Total depreciation at the end of its life.
B.)Book value at the end of 17 years.
C.)Year at which the book value is half its original price.
Please provide the detailed solution not in excel thank you.
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