A machine costs P 1, 500, 000. It has a salvage value of P600, 000 at the end of its economic life. Using the sum of the years digit method, the book value at the end of 2 years is estimated to be P870, 000. What is the machine economic life in years?

A machine costs P 1, 500, 000. It has a salvage value of P600, 000 at the end of its economic life. Using the sum of the years digit method, the book value at the end of 2 years is estimated to be P870, 000. What is the machine economic life in years?

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Description: A machine costs P 1, 500, 000. It has a salvage value of P600, 000 at the end of its economic life. Using the sum of the years digit method, the book value at the end of 2 years is estimated to be P870, 000. What is the machine economic life in years

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...

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