Question
ABC Company purchased a machinery worth PHP 4,000,000 to increase the sales of a product for every year by PHP 1,500,000 for the next 4
ABC Company purchased a machinery worth PHP 4,000,000 to increase the sales of a product for every year by PHP 1,500,000 for the next 4 years. The company was able to request for - and was granted -- a 10% discount on the price of the machine. Installation costs of the machinery is PHP 200,000. The delivery fee for the machine is PHP 25,000. After four years, the market value of the machine will be 1% of its acquisition cost.
1.)What is the market value of the machine after 4 years?
2.)What is the depreciation expense, if the company is using straight line depreciation and the life of the machine is 4 years.
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