Solution: What is the annual depreciation charge and what is the book value of the machine?

(Last Updated On: December 8, 2017)

What is the annual depreciation charge and what is the book value of the machine?

Problem Statement: ME Board October 1992

The initial cost of a paint sand mill, including its installation, is P800,000. The BIR approved life of this machine is 10 years for depreciation. The estimated salvage value of the mill is P50,000 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 six years?

  • A. P76,500.00 ; P341,000.00
  • B. P75,000.00 ; P343,000.00
  • C. P76,500.00 ; P340,000.00
  • D. P77,000.00 ; P342,000.00

Problem Answer:

The annual depreciation charge is P76,500.00 while the book value of the machine is P341,000.00.

Solution:

Solution: What is the annual depreciation charge and what is the book value of the machine?

Latest Problem Solving in Engineering Economics (Annuity, Depreciation, Bonds, Breakeven, etc.)

div.feedburnerFeedBlock ul li {background: #E2F0FD;
list-style-type: none;
margin:0 0 5px 0px;
padding:5px 5px 5px 10px !important;
border: 1px solid #0080ff;
border-radius:8px;
-moz-border-radius:8px;
-webkit-border-radius:8px;

}

div.feedburnerFeedBlock ul li:hover {
background:#ffffff;
}

div.feedburnerFeedBlock ul li a{
color:#ffffff;
text-decoration:none;
}

div.feedburnerFeedBlock ul li a:hover {
text-decoration: underline;
color: #000000;
}
div #creditfooter{
display: none;
}

More Questions in: Engineering Economics (Annuity, Depreciation, Bonds, Breakeven, etc.)

Online Questions and Answers in Engineering Economics (Annuity, Depreciation, Bonds, Breakeven, etc.)

Solution: What is the annual depreciation charge and what is the book value of the machine?
Rate this:

Add Comment

© 2014 PinoyBIX Engineering. © 2018 All Rights Reserved | How to Donate?
mcq in computer fundamentals
➡️ MCQ in Computer Fundamentals Series | ECE Board Exam
mcq in industrial electronics
➡️ MCQ in Industrial Electronics Series | ECE Board Exam
MCQ in Power Generators (Cells and Batteries) Part 5 | ECE Board Exam
➡️ MCQ in Power Generators, Sources, Principles, Applications Series | ECE Board Exam
mcq in electrical circuit
➡️ MCQ in Electrical Circuit Series | ECE Board Exam
Online Tool: Color Code Conversions
Online Tool: Color Code Conversions
Online Tool: Weight Measurement Conversions
Online Tool: Weight Measurement Conversions
Online Tool: Temperature Measurement Conversions
Online Tool: Temperature Measurement Conversions
Online Tool: Length Measurement Conversions
Online Tool: Length Measurement Conversions

Get FREE Review Course
in your inbox

Subscribe to our mailing list and get reviewers and updates to your email inbox.

Thank you for subscribing.

Something went wrong.