A. Determine the annual cost of depreciation using Straight Line and Sinking Fund method if the equipment life is expected to reach 10 years and have a salvage value of P5,000. Assume a fund with a compound interest rate of 5%. B. Determine the depreciation amount at year 7 using Declining Balance, Double Declining Balance, and SYD Method.
A. Determine the annual cost of depreciation using Straight Line and Sinking Fund method if the equipment life is expected to reach 10 years and have a salvage value of P5,000. Assume a fund with a compound interest rate of 5%. B. Determine the depreciation amount at year 7 using Declining Balance, Double Declining Balance, and SYD Method.
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
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A heavy equipment has been newly purchased by ML Bangbang Construction. The said equipment originally cost P65,000. It also costs the dealer P2,000 to transport the unit to the contractor's site. Another P3,000 have been added for the installation of the equipment.
A. Determine the annual cost of depreciation using Straight Line and Sinking Fund method if the equipment life is expected to reach 10 years and have a salvage value of P5,000. Assume a fund with a compound interest rate of 5%.
B. Determine the depreciation amount at year 7 using Declining Balance, Double Declining Balance, and SYD Method.
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