A machine has a first cost of PhP 800,000 and a salvage value of PhP 50,000 at the end of its life after 10 years. The annual savings for the use of the machine amounts to PhP 124,900.97. If the annual maintenance cost of the machine is PhP 4,000 and the sinking fund to recover depreciation earns 6% compute the rate of return of investment.
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- A machine has a first cost of P800,000 and a salvage value of P50,000 at the end of its life after 10 years. The annual saving for the use of the machine amount s to P124,900.97. If the annual maintenance of the machine is P4000 and the sinking fund to recover depreciation earns 6%, compute for the rate of return of investment. Answer: 8%A bulldozer was bought for ₱ 0.50M and have an estimated useful life of 10 years after which itwill have a scrap value of ₱0.05M. Repair and maintenance is placed at ₱ 35T annually, while cost for fuel,oil, lubricant and operator plus helper will be ₱ 12T monthly. Determine the following: What is the annual cost using the sinking fund method for computing depreciation if money is worth 10%effective?A machine costs Php 800,000 with a salvage value of Php 100,000 at the end of its life of 10 years. If money is worth 4.5% annually, use Sinking Fund Method and determine the depreciation at the 5th year.
- A contractor can buy dump trucks for ₱ 800,000 each or rent them for ₱ 1,200 per truck per day. The truck has a salvage value of ₱ 100,000 at the end of its useful life of 5 years. The annual cost of maintenance is ₱ 20,000. Using annual cost method and 14% interest rate, determine the number of days per year that a truck must be used to warrant its purchased. Use sinking fund method of depreciation.A Machine costs ₱80,000 and an estimated life of 10 years with a salvage value of ₱5,000. What is the book value after 5 years using the following methodology? a. Straight Line Method. BV5=₱42,500 b. Sinking Fund Method if i=9%. BV5=₱50,456.44 c. Declining Balance Method if the depreciation cost is equal to the value of i. BV5=₱49,922.57 d. Double Declining Balance Method. BV5=₱26,214.40 e. Sum of the Years Digit Method. BV5=₱25,454.5 f. Service-Output Method. Assuming that the total service of the machine is 1,497,600 hours and the number of working days per year is 260 days. What is the book value after 4 years if the machine production time a is 24 hours? BV4=₱79,687.38A machine has a first cost of P50,000 with interest rate of 10% annually. Expected salvage value after 10 years is P5,000. Find the total depreciation after 9 years using sinking fund method.
- A machine costs $300,000 with a salvage value of P50,000 at the end of its life of 10 years. If money is worth 6% annually, use Sinking Fund Method and tabulate the annual depreciation and book value.A bulldozer was bought for ₱ 0.50M and have an estimated useful life of 10 years after which itwill have a scrap value of ₱0.05M. Repair and maintenance is placed at ₱ 35T annually, while cost for fuel,oil, lubricant and operator plus helper will be ₱ 12T monthly. Determine the following: What is the annual cost using the straight line method for computing depreciation when the minimumattractive rate of return is 8%?A machine has a first cost of P400,000 and a salvage value of P46,000 17 years from now. If the interest is 10%. Find the annual depreciation(P) using sinking fund method of depreciation.
- A lathe machine costs ₱650,000 and the salvage value of ₱65,000 after 20 years.Find the annual depreciation at the end of 8 years by DBM and the annual depreciation at the end of 8 years by DDBMA machine costs Php 300,000 with a salvage value of Php 50,000 at the end of its life of 1O years. If money is worth 6% annually, use Sinking Fund Method and determine the total depreciation at the end of 6th year. A. Php 113,801.94 B. Php 132,300.79 C. Php 133,756.36 D. Php 123,405.94A machine costs P1,800,000. It has a salvage value of P300,000 at the end of 5 years. If money is worth 6% annually, determine the starting depreciation charge using double-declining balance method.