An equipment costing P250, 000 has an estimated life of 15 years with a book value of P30, 000 at the end of the period. Compute the depreciation charge on its 10th year using sinking fund method assuming i 8%. %3D
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- Depreciation Equipment bought for P 87,000.00 is expected to last for 24 years. If the scrapvalue after 20 years is P 60,000.00. How much is the depreciation for year 12?A factory equipment has an initial cost of P200,000,00. It salvage value after 10 years is P20,000,00. As a percentage of the initial cost, what is the straight line depreciation rate of the equipment?Equipment costing $20,000 that is a MACRS 5-year property isdisposed of during the second year for $15,000. Calculate anydepreciation recapture, ordinary losses, or capital gains associatedwith disposal of the equipment.
- A motor cycle has an initial cost of P 50,000.00 and a salvage value of P 10,000.00 after 10 years. What is the straight line method depreciation rate as a percentage of the initial cost?A piece of machinery at a maunfacturing plant has a cost basis of $50,000, and a salvage value of $9,000 after producing 32,000 units. Using units-of-production depreciation, what is the allowed depreciation charge per unit. Express your answer in $ to the nearest $0.01.An asset is purchased for P350,00. The salvage value in 18years is P65,000/what are the depreciation in the first three years using straight line method ?
- An asset is purchased for P 120,000,00. Its estimated life is 10 years, after which it will be sold for P 12,000,00. Find the depreciation for the second year using SOYD method.An electric sewing machine costs P10,000 with a salvage value of P500 at the end of 10 years. Calculate the annual depreciation cost by the sinking fund method at 5% interest.A company purchases an asset for P10, 000 and plans to keep it for 20 years. If the salvage value is zero at the end of the 20th year, what is the depreciation in the third year? Use sum-of-the-years digit depreciation.
- A certain newly created company installed a 10,000kW electric generating plant at a cost of P430 per kW. The estimated life of the plant is 15 years. Salvage value is conservatively set at x% of the first cost. The interest on the sinking fund deposit is 3.5%. The accumulated depreciation after 10 years is P2,483,595. a. What percentage of first cost is set as salvage value? b. How much should the electric generating plant be priced at the end of 8 years? c. If the salvage value is increased by 2%, what is the book value after 10 years?A manufacturing company purchases a new machine for $10,000. The expected useful life of the machine is 5 years, and it has no residual value. Calculate the annual depreciation expense using the straight-line depreciation method.In Straight Line depreciation, the book value at the end of the depreciable life is equal to the salvage value used to calculate the yearly depreciation amount. TRUE OR FALSE