The capitalized cost of a new printing equipment was found to be P426,000.00. The rate of interest was 12%, with a salvage value of P30,000.00 at the end of a service life of 8 years. Assuming that the cost of perpetual replacement remains constant, determine the original cost of the equipment.Answer. P266,062.26 9. A plastic manufacturing company in Laguna installed a new boiler at a totalcost of P600,000.00 and is estimated to have a useful life of 10 years. It isestimated to have a scrap value at the end of its useful life of P20,000.00. Ifinterest is 12% compounded annually, determine its capitalized cost.Answer. P875,423.48

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The capitalized cost of a new printing equipment was found to be P426,000.00. The rate of interest was 12%, with a salvage value of P30,000.00 at the end of a service life of 8 years. Assuming that the cost of perpetual replacement remains constant, determine the original cost of the equipment. Answer. P266,062.26

The capitalized cost of a new printing equipment was found to be P426,000.00. The rate of interest was 12%, with a salvage value of P30,000.00 at the end of a service life of 8 years. Assuming that the cost of perpetual replacement remains constant, determine the original cost of the equipment. Answer. P266,062.26

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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