20. Fahtima has purchased a bottle filling machine for P5,000,000. The plant engineer estimates that the machine has a useful life of five years and a salvage value of P10,000 at the end of its useful life. Compute (a) depreciation cost during the third year, (b) cumulative depreciation cost through the third year and (c) book value at the end of third year using the straight line method, sinking fund method at 8%, declining balance method, double declining balance method, and SYD method.
20. Fahtima has purchased a bottle filling machine for P5,000,000. The plant engineer estimates that the machine has a useful life of five years and a salvage value of P10,000 at the end of its useful life. Compute (a) depreciation cost during the third year, (b) cumulative depreciation cost through the third year and (c) book value at the end of third year using the straight line method, sinking fund method at 8%, declining balance method, double declining balance method, and SYD method.
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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