Prepare a depreciation table for semiconductor manufacturing equipment that cost P1.8M, with an estimated salvage value of 10% of the original cost at the end of 5 years using the straight-line method. Book Value at theDepreciationduring the year,Total depreciation atthe end of the year,Book Value atYearbeginning of thethe end of theyear, CodnDnyear, Cn13.2.

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Prepare a depreciation table for semiconductor manufacturing equipment that cost P1.8M, with an estimated salvage value of 10% of the original cost at the end of 5 years using the straight-line method

Prepare a depreciation table for semiconductor manufacturing equipment that cost P1.8M, with an estimated salvage value of 10% of the original cost at the end of 5 years using the straight-line method

Fundamentals Of Construction Estimating

4th Edition

ISBN:9781337399395

Author:Pratt, David J.

Publisher:Pratt, David J.

Chapter9: Pricing Construction Equipment

Section: Chapter Questions

Problem 5RQ

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Concept explainers

Tax Significance of Depreciation

While calculating taxes, depreciation is the method used to allocate the cost of a tangible or immovable asset over the useful life of an asset. In other words, allocate part of that cost to the times when tangible assets help generate revenue or sales. By recording the depreciation of an asset, depreciation reduces the amount of taxes a company or business pays in tax deductions.

Question

Book Value at the
Depreciation
during the year,
Total depreciation at
the end of the year,
Book Value at
Year
beginning of the
the end of the
year, Co
dn
Dn
year, Cn
1
3.
2.

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