A tax- and duty-free importation of a 30-horsepower sand mill for paint manufacturing costs ₱400,000 CIF Manila. Bank charges, arrester and brokerage cost ₱6,000. Foundation and installation costs were ₱30,000. Other incidental expenses amount to ₱25,000. Salvage value of the mill is estimated to be ₱65,000 after 20 years. Find the appraisal value of the mill using straight-line depreciation at the end of 12 years.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 4EA: Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is...
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 A tax- and duty-free importation of a 30-horsepower sand mill for paint manufacturing
costs
₱400,000 CIF Manila. Bank charges, arrester and brokerage cost ₱6,000.
Foundation and installation costs were ₱30,000. Other incidental expenses amount to
₱25,000. Salvage value of the mill is estimated to be ₱65,000 after 20 years. Find the
appraisal value of the mill using straight-line depreciation at the end of 12 years.

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