Problem 1: A civil engineer bought a crane for erecting tall buildings. It was invoiced from Japan (Cost, Insurance, freight) to Manila ay P 60, 000. Brokerage, custom's, permits and etc. total P 120,000. At the end of 10 years, he expects to sell it for P 70,000. Tabulate and determine the depreciation charge during the 4th year and the book value at the end of 6th year(show solution at these years) using the following:

D

An x-ray machine at a dental office is MACRS 5-year property. The x-ray machine costs $6,000 and has an expected useful life of 8 years. The salvage value at the end of 8 years is expected to be $500. Assuming MACRS depreciation, what is the book value at the end of the third year? a. $1,584b. $1,728 c. $3,916 d. $4,272

George Company has the opportunity to purchase an asset that costs $40,000. The asset is expected to increase net income by $10,000 per year. Depreciation expense will be $5,000 per year. Based on this information the payback period is:                           A) 4 years.                           B) 2.5 years.                           C) 2.67 years.                           D) 8 years.