Company Confidential purchases a laser cutting machine for Php 28,000,000.00. This does not include the delivery and installation cost of 15% of the item price. They plan to use it for 15, years, though it is also rated for 100,000 hours only. The salvage value for the machine is expected to be Php 25,000.00 at the end of life. Calculate and draw the depreciation table (year, depreciation, book value per year) for the following: Finally, graph all the depreciations as lines in a single graph, with proper labels and legends. a) Straight line depreciation b) Double declining balance c) Sinking fund method with 6% interest rate
Company Confidential purchases a laser cutting machine for Php 28,000,000.00. This does not include the delivery and installation cost of 15% of the item price. They plan to use it for 15, years, though it is also rated for 100,000 hours only. The salvage value for the machine is expected to be Php 25,000.00 at the end of life. Calculate and draw the depreciation table (year, depreciation, book value per year) for the following: Finally, graph all the depreciations as lines in a single graph, with proper labels and legends. a) Straight line depreciation b) Double declining balance c) Sinking fund method with 6% interest rate
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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