An engineering firm purchased a second hand truck for P 530,000 and paid P 15,000 for freight and taxes to the job site. The equipment has a normal life of 10 years with a trade in value of P 50,000 against the purchase of a new equipment at the end of the life. Determine the annual depreciation cost by the straight line method.

An engineering firm purchased a second hand truck for P 530,000 and paid P 15,000 for freight and taxes to the job site. The equipment has a normal life of 10 years with a trade in value of P 50,000 against the purchase of a new equipment at the end of the life. Determine the annual depreciation cost by the straight line method.

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

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