The initial cost of a paint sand mill, including its installation is P800,000. The BIR approved life of this machine is 10 years for depreciation. The estimated salvage value of the mill is P50,000 and the cost of dismantling is estimated to be P15,000. Using the straight line depreciation, What is the annual depreciation charge and what is the book value of the machine at the end of six years: A. P56,897 : P245,900 B. P76,500 : P341,000 C. P65,456 : P456,221 D. P78,234 : P456,234

The initial cost of a paint sand mill, including its installation is P800,000. The BIR approved life of this machine is 10 years for depreciation. The estimated salvage value of the mill is P50,000 and the cost of dismantling is estimated to be P15,000. Using the straight line depreciation, What is the annual depreciation charge and what is the book value of the machine at the end of six years: A. P56,897 : P245,900 B. P76,500 : P341,000 C. P65,456 : P456,221 D. P78,234 : P456,234

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 2E

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