1. An equipment has a first cost ofP500,000 and the cost of installationis P30,000. If the salvage value is10% equipment cost at the end ofthe its useful life of 5 years. Computethe book value at the end of 3rd year.Using:A. Straight Line MethodB. Sum of Years Digit MethodC. Sinking Fund Method (if money isworth 6% per annum)D. Declining Balance MethodE. Using Double Declining BalanceMethod

Name: 1. An equipment has a first cost ofP500,000 and the cost of installat
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Description: 1. An equipment has a first cost ofP500,000 and the cost of installationis P30,000. If the salvage value is10% equipment cost at the end ofthe its useful life of 5 years. Computethe book value at the end of 3rd year.Using:A. Straight Line MethodB. S

Installation cost =P500000 First cost = P30000 Salvage cost = 10%equipment cost Useful life = 5…

Answered: 1. An equipment has a first cost of…

Business

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1. An equipment has a first cost of P500,000 and the cost of installatic is P30,000. If the salvage value is

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 8P

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