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WhatsApp: +86 18203695377The estimated salvage value of the mill is P50, and the cost of dismantling is estimated to be P15,000. Using straight line depreciation, what is the annual depreciation charge and what is the book value of the machine at the end of 6 years? A certain machinery costs P50,000 last 12 years with a salvage value of P5,000. Money is worth 5%.
WhatsApp: +86 18203695377The following information are made available by the management: Old New Equipment cost P70,000 P120, Current salvage value 14,000 Salvage value, end of useful life 5,000 16, Annual operating costs 44,000 32, Accumulated depreciation 55,300 Estimated useful life 10 years 10 years The company is not subject to tax and its cost of capital is 12%.
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