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Sample Problems: Straight Line Method

This document provides 4 sample problems demonstrating the straight line depreciation method. The first problem calculates book value after 5 years of a machine that cost $50,000 with a $10,000 salvage value over 10 years. The second problem finds depreciation for the first 3 years of an asset that cost $500,000 with a $100,000 salvage value over 25 years. The third problem determines book value after 4 years of equipment that cost $500,000 plus $30,000 installation with a 10% salvage value over 5 years. The fourth problem calculates book value after 8 years of a $8,000 machine with a $500 salvage value over 10 years.

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Ciel Simeon
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© Attribution Non-Commercial (BY-NC)
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164 views

Sample Problems: Straight Line Method

This document provides 4 sample problems demonstrating the straight line depreciation method. The first problem calculates book value after 5 years of a machine that cost $50,000 with a $10,000 salvage value over 10 years. The second problem finds depreciation for the first 3 years of an asset that cost $500,000 with a $100,000 salvage value over 25 years. The third problem determines book value after 4 years of equipment that cost $500,000 plus $30,000 installation with a 10% salvage value over 5 years. The fourth problem calculates book value after 8 years of a $8,000 machine with a $500 salvage value over 10 years.

Uploaded by

Ciel Simeon
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Sample Problems

Straight Line Method

Sample Problem 1

A machine has an initial cost of P50, 000.00 and a salvage value of P10, 000.00 after 10 years. What is the book value after five years using Straight Line Method.

Sample Problem 2

An asset is purchased for P500, 000.00. The salvage value in 25 years is P100, 000.00. What are the depreciation in the first three years using Straight Line Method.

Sample Problem 3
The cost of the equipment is P500, 000.00 and the cost of installation is P30, 000.00. If the salvage value is 10% of the cost of the equipment at the end of 5 years, determine the book value at the th end of 4 year. Use Straight Line Method.

Sample Problem 4

A machine costs P8, 000.00 and an estimated life of 10 years with a salvage value of P500.00. What is its book value after 8 years using straight line method.

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