The cost of an equipment is P650,000 and the cost of installation is P45,000. If the salvage value is 12% of the cost of equipment at the end of 10 years, determine the book value at the end of the fourth year. a. Use straight-line method (SLM) b. Use sinking fund method (SFM) at 3.5% interest. Please answer completely will give rating surely Complete Answer needed
The cost of an equipment is P650,000 and the cost of installation is P45,000. If the salvage value is 12% of the cost of equipment at the end of 10 years, determine the book value at the end of the fourth year. a. Use straight-line method (SLM) b. Use sinking fund method (SFM) at 3.5% interest. Please answer completely will give rating surely Complete Answer needed
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The cost of an equipment is P650,000 and the cost of installation is P45,000. If the salvage value is 12% of the cost of equipment at the end of 10 years, determine the book value at the end of the fourth year.
a. Use straight-line method (SLM)
b. Use sinking fund method (SFM) at 3.5% interest.
Please answer completely will give rating surely
Complete Answer needed
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