Power to a remote transmitting station is provided by a Diesel-electric generator unit. The original cost of the unit is P65,000. It cost P2,000 to ship the unit at the job site. An additional cost of P3,000 incurred for installation. Determine the book value after 5 years if the unit has an expected life of 10 years using a). Straight-line method b). Sinking fund method if the rate of interest is 5%. The salvage value of the unit at the end of its life was estimated at P5,000.

Structural Analysis
6th Edition
ISBN:9781337630931
Author:KASSIMALI, Aslam.
Publisher:KASSIMALI, Aslam.
Chapter2: Loads On Structures
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Power to a remote transmitting station is provided by a Diesel-electric generator unit. The original cost of the unit is P65,000. It cost P2,000 to ship the unit at the job site. An additional cost of P3,000 incurred for installation. Determine the book value after 5 years if the unit has an expected life of 10 years using a). Straight-line method b). Sinking fund method if the rate of interest is 5%. The salvage value of the unit at the end of its life was estimated at P5,000.

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