Engineering Economics: Straight Line Method

1. PREPARE A DEPRECIATION TABLE FOR AN ASSET WHICH WAS BOUGHT AT PHP15,000 AND USEFUL FOR A PERIOD OF 7 YEARS. ESTIMATED SALVAGE VALUE IS 10% OF ITS ORIGINAL COST. 2. EQUIPMENT BOUGHT FOR PHP60,000 IS EXPECTED TO LAST FOR 30 YEARS. IF THE BOOK VALUE AFTER 20 YEARS IS PHP20,000, HOW MUCH IS THE DEPRECIATION EACH YEAR? FIND THE BOOK VALUE AFTER 10 YEARS. 3. A MACHINE WHICH COSTS PHP10,000 WAS SOLD AS SCRAP AFTER BEING USED FOR 10 YEARS. IF THE SCRAP VALUE WAS PHP500, DETERMINE THE TOTAL DEPRECIATION AND BOOK VALUE AT THE END OF THE 5TH YEAR.