FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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=₱79,687.38

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