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Depreciation Company ABC purchased a machinery worth PHP 4,000,000 to increase the sales of a product for every year by 1,500,000 pesos for the next
Depreciation Company ABC purchased a machinery worth PHP 4,000,000 to increase the sales of a product for every year by 1,500,000 pesos for the next 4 years. The company was able to request for a discount on the price of the machine only by 10%. Installation costs of the machinery is PHP 200,000. The delivery fee of the machine is PHP 25,000. After 4 years, the market value of the machine will still be 1% of installed costs. Compute the depreciation per year (d), accumulated depreciation (D), and Book Value (BV) per year using Straight line Depreciation, Declining Method, Sinking Fund at 10% interest rate, and Sum of the years method. (16 pts) Which of the four methods should be adopted by Company ABC if they want to recover 80% of the machine's installed costs by the end of the 2nd year?( 1 pt)
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