A grocery store bought a generator set for P100,000. Other expenses including installation amounted to P15,000. The generator set is to have a life of 20 years with a salvage value at the end of life of P5,000. Determine the depreciation charge during the 13th year and the book value at the end of 13 years by the (a) double declining balance method (b) SYD method.

Answered: Determine the depreciation charge…

Determine the depreciation charge during the 13th year and the book value at the end of 13 years by the (a) double declining balance method (b) SYD method

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....

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Question

A grocery store bought a generator set for P100,000. Other expenses including installation amounted to P15,000. The generator set is to have a life of 20 years with a salvage value at the end of life of P5,000. Determine the depreciation charge during the 13^th year and the book value at the end of 13 years by the (a) double declining balance method (b) SYD method.

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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