Question
The company purchase new equipment for the replacement of the old machine. New asset worth 2M pesos acquisition cost, 12% import tax, 200,000 transportation charge.
The company purchase new equipment for the replacement of the old machine. New asset worth 2M pesos acquisition cost, 12% import tax, 200,000 transportation charge. The Salvage value of the asset is 20% of the total first cost with 15 yrs economic service years. If money worth 7% interest per annum and the installation cost of the new machine is 150,000. Solve for the ff.
(a). Annual depreciation for the first 3 yrs of the asset using SYD. (20 pts)
(b) Total depreciation of the machine and book Value at the end of year 5 DBM. (20 pts)
(c) Depreciation of the asset during the 10th yr using SLM. (10pts)
(d) Profitable resale value of the asset at the end of the 12th yr using SFM. (30 points)
(e) Accumulated depreciation of the asset from yr 1 to yr 10 using DDBM method. (20 pts)
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