The following is a schedule of machinery owned by PERSEVERANCE Manufacturing Company. Estimated Estimated Total Salvage Life in Cost Value Years Machine A P 600,000 P110,000 20 Machine B 315,000 30,000 10 Machine C 84,000 0 15 Machine D 107,000 7,000 5 P1,106,000 PERSEVERANCE computes depreciation on a straight-line basis. Based on the information presented, compute the: (1) Composite life of these assets (in years). (2) Composite depreciation rate.
The following is a schedule of machinery owned by PERSEVERANCE Manufacturing Company. Estimated Estimated Total Salvage Life in Cost Value Years Machine A P 600,000 P110,000 20 Machine B 315,000 30,000 10 Machine C 84,000 0 15 Machine D 107,000 7,000 5 P1,106,000 PERSEVERANCE computes depreciation on a straight-line basis. Based on the information presented, compute the: (1) Composite life of these assets (in years). (2) Composite depreciation rate.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following is a schedule of machinery owned by PERSEVERANCE Manufacturing Company.
Estimated |
Estimated |
||
Total |
Salvage |
Life in |
|
Cost |
Value |
Years |
|
Machine A |
P 600,000 |
P110,000 |
20 |
Machine B |
315,000 |
30,000 |
10 |
Machine C |
84,000 |
0 |
15 |
Machine D |
107,000 |
7,000 |
5 |
P1,106,000 |
PERSEVERANCE computes
(1) |
Composite life of these assets (in years). |
(2) |
Composite depreciation rate. |
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