On January 2, 2000 the Gonzalo Corporation purchases an automatic soldering machine for P18,00O. The corporation...
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On January 2, 2000 the Gonzalo Corporation purchases an automatic soldering machine for P18,00O. The corporation plans to transfer the machine to subsidiary at the end of 2005 for P11,000. Determine the life of the machine so that the book value at the end of 2005 will be P11,000 if the salvage value after L years should be 4,000 using: a) straight-line method (10 pts.) b) double declining balance method (10 pts.) On January 2, 2000 the Gonzalo Corporation purchases an automatic soldering machine for P18,00O. The corporation plans to transfer the machine to subsidiary at the end of 2005 for P11,000. Determine the life of the machine so that the book value at the end of 2005 will be P11,000 if the salvage value after L years should be 4,000 using: a) straight-line method (10 pts.) b) double declining balance method (10 pts.)
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aOn Jan 2 2000 The cost of asset is 18000 Salvage value is 4000 On 31 Dec2005 the carrying value of ... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Posted Date:
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