A machine costing P 480 000.00 has a life expectancy of 12 years with a salvage value of 10% of the first cost. What is the book value after five years using the declining balance method? P 166 342 P 152 758 P 174 322 P 183 897
Added by Ricardo M.
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The formula for the depreciation rate \( R \) is: \[ R = 1 - \left( \frac{\text{Salvage Value}}{\text{Cost}} \right)^{\frac{1}{n}} \] where \( n \) is the useful life of the asset. Show more…
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