Depreciation 2 from hipolito book

2 posts / 0 new
Log in or register to post comments
Last post
March 1, 2013 - 12:39am
#1
ryst009
Offline
Joined: Jan 8 2013 - 10:45am
Points: 3836
Depreciation 2 from hipolito book

Depreciation 2 from hipolito book

image_0.jpg
Vote for this post, click the Like button once
Top
March 1, 2013 - 6:42am
Romel Verterra's picture
Romel Verterra
Online
Joined: Oct 12 2008 - 3:39pm
Points: 1781
Re: Depreciation 2 from hipolito book

First Cost
$ FC = 360,000 + 5000 + 25,000 + 20,000 $
 

Salvage value
$ SV = 60,000 $
 

Total Depreciation
$ D = FC - SV $
 

Economic life
$ n = 20 $
 

Depreciation charge (Annual depreciation)
$ d = \dfrac{D}{n} $
 

Appraisal values in 10 years
$ BV = FC - 10d $           answer
 

Appraisal values in 15 years
$ BV = FC - 15d $           answer
 

Another Solution
Draw a rectangle FC by n with FC vertical and n horizontal. Draw a straight line from left top corner to a any point on the opposite vertical side (not a corner). Draw a vertical line anywhere in the middle and label it accordingly.
 

econ_003-sld-method.gif

 

Solve for Dm by ratio and proportion, and with Dm known, BV can be found. For (a) m = 10, and for (b) m = 15.

up
1 user has voted.
Vote for this answer, click the Thumbs-up icon once
Top
Log in or register to post comments
SPONSORED LINKS
Page copy protected against web site content infringement by Copyscape

Recent comments