A company purchased a machine for Php 110,000. At the end of ten years, the company expects to sell the machine for Php 10,000 and will have no further use for the machine. The machine was operated for 8,000 hours per year. After five years, the company decided to sell the machine.

1.How much should be the minimum selling price of the machine if straight-line method was used?

2. How much should be the minimum selling price of the machine if sum-of-years digit method was used?

3. How much should be the minimum selling price of the machine if 150% declining balance method was used?

4. How much should be the minimum selling price of the machine if sinking fund method was used with sinking fund interest rate of 10%? 

5. How much is the machine’s depreciation rate per hour of use?

Answer rating: 100% (QA)

To answer your questions well calculate the minimum selling price of the machine using different depreciation methods Lets assume that the machines salvage value is Php 10000 1 Straightline method Und... View the full answer