A procurement engineer bought a large transformer core for Php 250,000. Other expenses including installation amounted to Php 30,000. At the end of its estimated useful life of 15 years, the salvage value will be 25% of the first cost. Using straight line method for depreciation, what is the book value after 4 years?

A procurement engineer bought a large transformer core for Php 250,000. Other expenses including installation amounted to Php 30,000. At the end of its estimated useful life of 15 years, the salvage value will be 25% of the first cost. Using straight line method for depreciation, what is the book value after 4 years?

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

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 2E

See similar textbooks

Similar questions

An equipment has a first cost of Php20,000 and has a salvage value of Php2,000 after 10 years. What is the depreciation after 3 years using declining balance method?
A machine costing P480,000 has a life expectancy of 15 years with a salvage value of 10% of the first cost. Using the Depreciation by Declining Balance Method (DBM), what is the depreciation in the fifth year?
An engineering firm purchased 25 years ago a mini power plant for Php 5.0 M. Other expenses including repairs amounted to Php 500,000. The mini power plant is up to next 25 years only and for the plant to operate. The salcage value is Php 500,000. Determine the depreciation charge during the 20TH and 40TH year. Also determine the book value at the end of 25th and 45th years if interest is 12% using a) Sum of the Years Digit method, b) Sinking Fund method and c) Double Declining Balance method . Pls show complete handwritten solution
A pumping station costs Php600,000 to construct, and it is projected to have a 20-year life with an estimated salvage value of 15% of the construction cost. Calculate the depreciation charge on year 15 using Double Declining Balance Method.
An asset is purchased for P350,00. The salvage value in 18years is P65,000/what are the depreciation in the first three years using straight line method ?
A certain commodity is amounting P1million. Freight and installation chargesamounted to 3% of the purchased price. It is expected to have a life of 8 years with a salvage value of 12% of the first cost. Determine the depreciation charge during the 5th year using MACRS Method.
An industrial plant bought a generator set for P120, 000. Other expenses including installation amounted to P10, 000. The generator is set to have a life of 15 years with a salvage value at the end of life of P8, 000. What is the depreciation charge during the 12th year by SYD method?
If machine has a first cost which is five times of its salvage value and the annual depreciation charge is equal to PhP 15,000.00 and a recovery period of 12 years. How much is the first cost in pesos?
A printing equipment costs P 74,506 has a life expectancy of 9 years and has a salvage value of P 4,479 at the end of its life. The book value at the end of x years is equal to P 30,389. Using straight line method of depreciation, solve for the value of x.
Certain equipment that cost Php. 7,000 has an economic life of n years and a salvage value of Php. 350 at the end of n years. The book value at the end of 4 years is Php. 2,197.22. Use the sum of the years’ digit method. Compute the total depreciation after 6 years.
A laser machine costing 380,000 pesos has a useful life of 30,000 hours at the end of which its salvage value is 45,000 pesos. In the first year it was used for 2,190 hours, in the 2nd year, 3,170 hours. Find the 2nd year depreciation cost.
A machine is bought P420,000 with an economic life of 6 years and a salvage value of P50,000.The cost is 12% per year. if the first year depreciation is P105,714,what method of deprecation was used?