Problem Statement: CE Board November 1997
The cost of equipment is P500,000 and the cost of installation is P30,000. If the salvage value is 10% of the cost of equipment at the end of years, determine the book value at the end of the fourth year. Use straight-line method.
- A. P146,320.50
- B. P146,000.00
- C. P146,230.50
- D. P146,023.50
The book value of the equipment at the end of the fourth year is P146,000.00.
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