ASSIGNMENT

1. Q purchased a Bulk Milk Cooler for P480 000.00. Shipping, tax, and installation costs amounted to P25 000.00, P20
000.00 and 15 000.00 years, determine the book value after four years and the depreciation charge on its last year of
service by preparing an SYD depreciation table.
•(Ans. P147 142.86; P17 857.14)
2. A certain corporation makes it a policy that for any/every- new equipment purchased, the annual depreciation cost should
not exceed 20% of the first cost at any time with no/without- salvage value. Determine the length of the service life if the
depreciation used is SYD method.
(Ans. 9years)

3. An equipment cost P 100,000 with a salvage value of 5,000 at the end of 10 years. Using Sinking Fund Method with
interest rate= 4%.a. Compute the annual depreciation cost.
Ans. 7912.6397 b. Find the book values at years 1 to 4.92,087.36, 83,858.21 , 75, 299.90, 66,399.26

4. A plant erected to manufacture socks with a first cost of P 10,000,00 with an estimated salvage value of P 100,000 at the
end of 25 years. Find the appraised value to the nearest 100 by sinking fund method at 6% interest rate at the end of
a. 10 years
b. 20 years
Ans. a. 7,621,600 b. P 3,362,200

5. A factory is constructed at a 1st cost of P 8,000,000 and with an estimated salvage value of P 200,000 at the end of 25 years. Find its
appraised value to the nearest 100 at the end of 10 years by using sinking fund of depreciation assuming an interest of 5% .
Ans. P 5,944,400