A consortium of international communications companies contracted for the purchase and installation of a fiber optic cable linking two major Asian cities at a total cost of P945,721,690. Freight and installation charges at 10% of the above total contract price with salvage value of 11.5% of the first cost. If the depreciated value over a period of 4 years is P359,540,158.30. Using Sum of The Years-Digits Method of Depreciation, determine the following: a. Length of useful life. b. Depreciation during the 9th c. Total depreciation after 13 years. d. Book Value after 10 years.

A consortium of international communications companies contracted for the purchase and installation of a fiber optic cable linking two major Asian cities at a total cost of P945,721,690. Freight and installation charges at 10% of the above total contract price with salvage value of 11.5% of the first cost. If the depreciated value over a period of 4 years is P359,540,158.30. Using Sum of The Years-Digits Method of Depreciation, determine the following: a. Length of useful life. b. Depreciation during the 9th c. Total depreciation after 13 years. d. Book Value after 10 years.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....

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