Note: 2 decimal places. An equipment costs Php 10,000 with a salvage value of Php 500 at the end of 10 years. Calculate the total depreciation charge and book value at the end of 7 years using:a. straight line methoddepreciation charge: Php 6650book value: Php 3350b. sinking fund method at 4% interestdepreciation charge: Phpbook value: Php 3750.36c. declining balance methoddepreciation charge: Php 8771.77book value: Php1228.236249.64d. double declining balance methoddepreciation charge: Php 7902.85book value: Php 2097.15e. sum of the year's digit methoddepreciation charge: Phpbook value: Php

Depreciation is the reduction in the value of asset due to normal wear and tear Effluxion of time.…

Answered: a. straight line method depreciation…

a. straight line method depreciation charge: Php 6650 book value: Php 3350 b. sinking fund method at 4% interest depreciation charge: Php 6249.64 book value: Php 3750.36

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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Question

Note: 2 decimal places.

An equipment costs Php 10,000 with a salvage value of Php 500 at the end of 10 years. Calculate the total depreciation charge and book value at the end of 7 years using:
a. straight line method
depreciation charge: Php 6650
book value: Php 3350
b. sinking fund method at 4% interest
depreciation charge: Php
book value: Php 3750.36
c. declining balance method
depreciation charge: Php 8771.77
book value: Php
1228.23
6249.64
d. double declining balance method
depreciation charge: Php 7902.85
book value: Php 2097.15
e. sum of the year's digit method
depreciation charge: Php
book value: Php

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