A. The first costs of an equipment is P 65, 000 and a salvage value of P 3, 000 at the end of its 6 years life. Find the total depreciation up to the third year using the Sum of the Years Digit Method. a. 44, 286 b. 38, 148 c. 36, 654 d. 42, 824
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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A. The first costs of an equipment is P 65, 000 and a salvage value of P 3, 000 at the end of its 6 years life. Find the total
a. 44, 286
b. 38, 148
c. 36, 654
d. 42, 824
B. A man deposits P 1000 at the end of each month for 3 years at a nominal rate of 12% compounded monthly. Compute the future worth of all his payments at the end of 3 years?
a. 41 224
b. 36 089
c. 43 077
d. 50 102
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