Mr. Jhonny bought a car worth P900,000 last January 1, 2000, and intend to sell it for P300,000 after its 10-year life. (c) If, on June 30, 2003, he decided to sell the old car at book value and buy a new car for P1,000,000, how much more money should jhonny borrow to buy the new car if he used the straight-line method in computing the depreciation every 6 months and made it a point to deposit the said amount in a bank that offers 10 percent compounded semiannually?
Mr. Jhonny bought a car worth P900,000 last January 1, 2000, and intend to sell it for P300,000 after its 10-year life. (c) If, on June 30, 2003, he decided to sell the old car at book value and buy a new car for P1,000,000, how much more money should jhonny borrow to buy the new car if he used the straight-line method in computing the depreciation every 6 months and made it a point to deposit the said amount in a bank that offers 10 percent compounded semiannually?
Chapter13: Property Transact Ions: Determination Of Gain Or Loss, Basis Considerations, And Nontaxable Exchanges
Section: Chapter Questions
Problem 45P
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Transcribed Image Text:Mr. Jhonny bought a car worth P900,000 last January 1, 2000, and intend to sell it for P300,000
after its 10-year life.
(c) If, on June 30, 2003, he decided to sell the old car at book value and buy a new car
for P1,000,00O, how much more money should jhonny borrow to buy the new car if he
used the straight-line method in computing the depreciation every 6 months and made
it a point to deposit the said amount in a bank that offers 10 percent compounded
semiannually? :
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