Using the following data, solve for the depreciation and book value and prepare tabulation of book value using a) Straight Line Method, b) Sinking Fund Method, c) Declining Balance Method First cost = ₱10,000 Salvage Value = ₱500 Life of Property = 5 years Number of Years = 3 years For sinking fund method, assume 10% interest rate.

Using the following data, solve for the depreciation and book value and prepare tabulation of book value using a) Straight Line Method, b) Sinking Fund Method, c) Declining Balance Method First cost = ₱10,000 Salvage Value = ₱500 Life of Property = 5 years Number of Years = 3 years For sinking fund method, assume 10% interest rate.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

Using the following data, solve for the depreciation and book value and prepare tabulation of book value using

a) Straight Line Method, b) Sinking Fund Method, c) Declining Balance Method

First cost = ₱10,000

Salvage Value = ₱500

Life of Property = 5 years

Number of Years = 3 years

For sinking fund method, assume 10% interest rate.

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