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Depreciation Sample Problem

The document presents various problems related to asset depreciation calculations using different methods, including straight-line and sum-of-the-years-digits (SYD). It involves calculating annual depreciation, book values over time, and determining the optimal selling time for a commercial building. Specific financial figures and scenarios are provided for each calculation.

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Day Nonz Getino
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8 views1 page

Depreciation Sample Problem

The document presents various problems related to asset depreciation calculations using different methods, including straight-line and sum-of-the-years-digits (SYD). It involves calculating annual depreciation, book values over time, and determining the optimal selling time for a commercial building. Specific financial figures and scenarios are provided for each calculation.

Uploaded by

Day Nonz Getino
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

1.

If an asset has a first cost of $50,000 with a $10,000 estimated salvage value after 5
years, ( a ) calculate the annual depreciation and ( b ) calculate and plot the book
value of the asset after each year, using straight line depreciation.
2. A commercial building has a salvage value of Php 1 million after 50 years. Annual
depreciation is Php 2 M. Using the Straight-Line Method, how many years after
should you sell the building for Php 30 M?
3. Determine the book value at the end of 4 years of a machine costing P50, 000
having a serviceable life of 8 years and a salvage value of 3,000 at the end of that
time, Use SYD method.
4. A machine costs Php1,400,000 with a salvage value of Php 700,000. Life of it is
six years. In the first year, 4000 hours. In the second year, 6000 hours and 8000
hours on the third year. The expected flow of the machine is 38000 hours in six
years. What is the depreciation at the end of the second year?

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