A heavy planner was purchased 12 years ago for P 50,000 with no salvage value. As the
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A heavy planner was purchased 12 years ago for P 50,000 with no salvage value. As the life of the planner was 20 years, a depreciation reserve has been provided on that basis. Now the owner wishes to replace the old planner by a newly – designed planner with several advantages. The old planner can sell for P 10,000. If the new planner costs P 70,000, how much new capital will be required to make the purchase if the depreciation is computed using
1. SL Method
2. SF Method at 10%
3. SYD Method
Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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