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A cooling water pumping station at a manufacturing plant in Metro Manila costs P30,000 to construct, and it is projected to have a 25-year life
A cooling water pumping station at a manufacturing plant in Metro Manila costs P30,000 to construct, and it is projected to have a 25-year life with an estimated salvage value of 10% of the construction cost. Calculate the annual depreciation charge for year 10(d10) using: Depreciation Method Manual Solution (n=10) 5 Score (pts) Spreadsheet (n=1 to 25) Choose any 2 methods (10) (10) (10) (10) (10) 20 a) Straight Line Method b) Declining Balance Method c) Double Declining Balance Method d) Sinking Fund Method at 10% e) Sum-of-the-Years' Digits Method Total 5 5 5 5 25 Solve: i. ii. Manually (3-decimal accuracy, d10 only) By using spreadsheets(choose any 2 methods), build the depreciation and book value schedules If the cooling water pumping station will be book-depreciated to zero over a recovery period of 30 years, calculate d10 manually using the double declining balance methods. iii. A cooling water pumping station at a manufacturing plant in Metro Manila costs P30,000 to construct, and it is projected to have a 25-year life with an estimated salvage value of 10% of the construction cost. Calculate the annual depreciation charge for year 10(d10) using: Depreciation Method Manual Solution (n=10) 5 Score (pts) Spreadsheet (n=1 to 25) Choose any 2 methods (10) (10) (10) (10) (10) 20 a) Straight Line Method b) Declining Balance Method c) Double Declining Balance Method d) Sinking Fund Method at 10% e) Sum-of-the-Years' Digits Method Total 5 5 5 5 25 Solve: i. ii. Manually (3-decimal accuracy, d10 only) By using spreadsheets(choose any 2 methods), build the depreciation and book value schedules If the cooling water pumping station will be book-depreciated to zero over a recovery period of 30 years, calculate d10 manually using the double declining balance methods
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