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Sinking fund method problems and solutions

01/10/2021 Client: muhammad11 Deadline: 2 Day

I need the solution please.

An equipment costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the end of the period. Compute the depreciation charge and its book value after 10 years using straight-line method. Ans. P24,336.26

An equipment costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the end of the period. Compute the depreciation charge and its book value after 10 years using sinking fund method assuming i = 8%

Ans. d = P14,666.67

BV = P103,333.33

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