Power to remote a transmitting station is provided by a diesel-generator unit. The original cost of the unit is Php 65,000.00. It costs Php 2,000.00to ship the unit to the job sitein2weeks.The broker may also add Php 500.00as dangerous goods fee whenever necessary. Php 3,000.00 was incurred for installation. After two (2) weeks, the testing and commissioning costs, Php 1,000.00. a)Determine the annual depreciation cost by the straight line if the unit has an expected life of 10 years. The salvage value of the unit at the end of its life was estimated at Php 5,000.00 b)Determine the annual depreciation cost by sinking fund method, assume that the annual charge for depreciation was deposited in a fund drawing compound interest at rate of 5%.
Power to remote a transmitting station is provided by a diesel-generator unit. The original cost of the unit is Php 65,000.00. It costs Php 2,000.00to ship the unit to the job sitein2weeks.The broker may also add Php 500.00as dangerous goods fee whenever necessary. Php 3,000.00 was incurred for installation. After two (2) weeks, the testing and commissioning costs, Php 1,000.00.
a)Determine the annual
b)Determine the annual depreciation cost by sinking fund method, assume that the annual charge for depreciation was deposited in a fund drawing compound interest at rate of 5%.
Step by step
Solved in 2 steps
