Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Please answer items 9,10,11 and 12. Thank you.
![9. A gasoline engine has an annual depreciation of P13,000 for 15 years and salvage
value of P20,000. Using sinking fund depreciation with 15% interest. Determine the
first cost of the engine.
10. A machine costs P15,000 was old as scrap after being used for 12 years. If the scrap
value was P650, determine the book value after 7years.
(Use Straight Line Method)
11. An equipment has a first cost of P10,000 a salvage value of P1000 at the end of 10
years. Determine the book value after 5 years using declining balance method.
12. An asset is purchased for P7,500. It estimated life is 8 years after which it will be
sold for P1500. Find the book value during the first-year sum-of -years digit (SOYD)
depreciation is used.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcd60d05e-674e-456d-a44d-28a8e08d4710%2Ffab6a209-8b6e-4037-b059-266c2b993e49%2F8aybytm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:9. A gasoline engine has an annual depreciation of P13,000 for 15 years and salvage
value of P20,000. Using sinking fund depreciation with 15% interest. Determine the
first cost of the engine.
10. A machine costs P15,000 was old as scrap after being used for 12 years. If the scrap
value was P650, determine the book value after 7years.
(Use Straight Line Method)
11. An equipment has a first cost of P10,000 a salvage value of P1000 at the end of 10
years. Determine the book value after 5 years using declining balance method.
12. An asset is purchased for P7,500. It estimated life is 8 years after which it will be
sold for P1500. Find the book value during the first-year sum-of -years digit (SOYD)
depreciation is used.
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