A machine costing P 480,000 has a life expectancy of 12 years with a salvage value of 10% of the first cost. What is the book value after five years using declining balance method? O a. P 183,892 O b. P 152,758 O c. P 214,785 O d. P 196,432

A machine costing P 480,000 has a life expectancy of 12 years with a salvage value of 10% of the first cost. What is the book value after five years using declining balance method? O a. P 183,892 O b. P 152,758 O c. P 214,785 O d. P 196,432

Fundamentals Of Construction Estimating

4th Edition

ISBN:9781337399395

Author:Pratt, David J.

Publisher:Pratt, David J.

Chapter9: Pricing Construction Equipment

Section: Chapter Questions

Problem 6RQ

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Concept explainers

Pricing Construction Equipment

Pricing construction equipment means estimating the cost of operation of all the construction equipment used in a construction project. The pricing is done based on two factors – ownership cost and operating cost of the equipment. Thorough knowledge of the ownership and operating costs is necessary for proper project management and executing profitable construction.

Question

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A machine costing P 480,000 has a life expectancy of 12 years with a salvage value of 10% of the first cost.
What is the book value after five years using declining balance method?
O a. P 183,892
O b. P 152,758
O c. P 214,785
O d. P 196,432

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