An Industrial plant bought a generator set for P90,000. Other expenses including installation amounted to P10,000. The generator is to have 17 years with a salvage value at the end of life of P5,000. Determine the book value at the end of 12 years by the following method; Declining balance method: P12,068 P14,393 P10.118 P8,483 Sinking fund method at 12%

An Industrial plant bought a generator set for P90,000. Other expenses including installation amounted to P10,000. The generator is to have 17 years with a salvage value at the end of life of P5,000. Determine the book value at the end of 12 years by the following method; Declining balance method: P12,068 P14,393 P10.118 P8,483 Sinking fund method at 12%

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 3CE

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