A company purchased a machine for P15,000. It paid sales tax and shipping costs of 1,000 and nonrecurring installation costs amounting to P1,200. At the end of five years, the company had no further use for the machine, so it was sold for P1,000. If 200% declining balance is used, 1. What is the depreciation at the end of year 3 using Straight Line, Declining Balance, and SYD methods? 2. What is the machine's remaining value at the beginning of the 4th year using the different methods mentioned above?

A company purchased a machine for P15,000. It paid sales tax and shipping costs of 1,000 and nonrecurring installation costs amounting to P1,200. At the end of five years, the company had no further use for the machine, so it was sold for P1,000. If 200% declining balance is used, 1. What is the depreciation at the end of year 3 using Straight Line, Declining Balance, and SYD methods? 2. What is the machine's remaining value at the beginning of the 4th year using the different methods mentioned above?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 2E

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