An engineer bought an equipment for P 548,440. Other expenses including installations amounted to P 33,469. At the end of its estimated useful life of 10 years, the salvage value will be 0.169 of the first cost. Using straight line method of depreciation, what is the book value after 7 years?

An engineer bought an equipment for P 548,440. Other expenses including installations amounted to P 33,469. At the end of its estimated useful life of 10 years, the salvage value will be 0.169 of the first cost. Using straight line method of depreciation, what is the book value after 7 years?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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