A Contractor imported a bulldozer for his job, paying P 350,000 to the Manufacturer. Freight and Insurance charges amounted to P 18,000; customs’ broker’s fees and arrastre services, P 8,500; taxes, permits and other expenses, P 35,000. If the contractor estimates the life of the bulldozer to be 10 years with a salvage value of P 20,000, determine the book value at the end of 8 years, a. using the Double Declining Balance Method. b. using the Declining Balance Method. c. using the Sinking Fund Method, i = 10%
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A Contractor imported a bulldozer for his job, paying P 350,000 to the Manufacturer. Freight and
Insurance charges amounted to P 18,000; customs’ broker’s fees and arrastre services, P 8,500;
taxes, permits and other expenses, P 35,000. If the contractor estimates the life of the bulldozer to
be 10 years with a salvage value of P 20,000, determine the book value at the end of 8 years,
a. using the Double Declining Balance Method.
b. using the Declining Balance Method.
c. using the Sinking Fund Method, i = 10%
d. using the Sum of the Years Method
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PLEASE WRITE YOUR SOLUTION ON A PAPER, THANK YOU
A Contractor imported a bulldozer for his job, paying P 350,000 to the Manufacturer. Freight and
Insurance charges amounted to P 18,000; customs’ broker’s fees and arrastre services, P 8,500;
taxes, permits and other expenses, P 35,000. If the contractor estimates the life of the bulldozer to
be 10 years with a salvage value of P 20,000, determine the book value at the end of 8 years,
a. using the Sum of the Years Method
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