The initial cost of paint sand mill, including its installation is, P800 000.00. The BIR approved life of this machine is 10 years for depreciation. The estimated salvage value of the mill is P 50,000.00 and the cost of dismantling is estimated to be P 15,000.00. Using straight line depreciation, what is the annual depreciation charge and what is the book value of the machine at the end of six years?

The initial cost of paint sand mill, including its installation is, P800 000.00. The BIR approved life of this machine is 10 years for depreciation. The estimated salvage value of the mill is P 50,000.00 and the cost of dismantling is estimated to be P 15,000.00. Using straight line depreciation, what is the annual depreciation charge and what is the book value of the machine at the end of six years?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 6CE

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