(Solved): Problem 1 What is the value of an asset after 8 years of use if it depreciates from its origina ...

Problem 1 What is the value of an asset after 8 years of use if it depreciates from its original value of P120,000.00 to its salvage value of $$3\%$$ in 12 years? Ans. P42,400 Problem 2 A man bought an equipment which cost P524,000.00. Freight and installation expenses cost him $$P31,000.00$$. If the life of the equipment is 15 years with an estimated salvage value of P120,000.00, find its book value after 8 years. Ans. P292,000 Problem 3 An equipment costing P250,000 has an estimated life of 15 years with a book value of $$\mathrm{P}30,000$$ at the end of the period. Compute the depreciation charge and its book value after 10 years using straight-line method. Ans. P24,336.26 Problem 4 An equipment costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the end of the period. Compute the depreciation charge and its book value after 10 years using sinking fund method assuming $$\mathrm{i}=8\%$$ $$\begin{array}{rl}\text{ Ans. }d& =\text{ P14,666.67 }\\ BV& =\text{ P103,333.33 }\end{array}$$ Problem 5 An equipment costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the end of the period. Compute the depreciation charge and its book value after 10 years using declining balance method. $$\begin{array}{c}\text{ Ans. BV }=\text{ P60,832.80 }\\ \mathrm{d}=P9,234.93\end{array}$$