ngr. Juan Dela Cruz group of companies decided to acquire a state-of-the art production machine that will cost Php 2,500,000. It will also require another Php 50,000 for shipping and Php 65,000 for installation. Using Standard Declining Balance Method at 8% annual rate, find: a. The depreciation cost for its 3rd year of use. b. The accumulated depreciation after 6 years. c. The salvage value if it is expected to last for 15 years.
ngr. Juan Dela Cruz group of companies decided to acquire a state-of-the art production machine that will cost Php 2,500,000. It will also require another Php 50,000 for shipping and Php 65,000 for installation. Using Standard Declining Balance Method at 8% annual rate, find: a. The depreciation cost for its 3rd year of use. b. The accumulated depreciation after 6 years. c. The salvage value if it is expected to last for 15 years.
Chapter9: Capital Budgeting And Cash Flow Analysis
Section9.A: Depreciation
Problem 5P
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Engr. Juan Dela Cruz group of companies decided to acquire a state-of-the art production machine that will cost Php 2,500,000. It will also require another Php 50,000 for shipping and Php 65,000 for installation. Using Standard Declining Balance Method at 8% annual rate, find:
a. The depreciation cost for its 3rd year of use.
b. The accumulated depreciation after 6 years.
c. The salvage value if it is expected to last for 15 years.
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