Question
DEPRECIATION A machine, purchased for Php5,000,000, has a depreciable life of five years. It will have an expected salvage value of Php450,000 at the end
DEPRECIATION
A machine, purchased for Php5,000,000, has a depreciable life of five years. It will have an expected salvage value of Php450,000 at the end of the depreciable life. Find the yearly depreciation and book value every year using the following methods:
1. Declining balance method = 130%
2. Double declining balance method
3. Sum of year digit.
If the machine has a capacity of 50,000 units for its life span. What is the depreciation and book value if the machine produces 20,000 units, 15,000 units , 10,000 units, 3,000 units and 2,000 units yearly from year 1 to 5 accordingly?
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
5th edition
978-1259728877, 1259728870, 978-1259565403
