Solution: Determine the book value of the equipment at the end of the fourth year

The cost of equipment is P500,000 and the cost of installation is P30,000. If the salvage value is 10% of the cost of equipment at the end of years, determine the book value at the end of the fourth year. Use straight-line method.

Determine the book value of the equipment  at the end of the fourth year

Problem Statement: CE Board November 1997

The cost of equipment is P500,000 and the cost of installation is P30,000. If the salvage value is 10% of the cost of equipment at the end of years, determine the book value at the end of the fourth year. Use straight-line method.

  • A. P146,320.50
  • B. P146,000.00
  • C. P146,230.50
  • D. P146,023.50

Problem Answer:

The book value of the equipment at the end of the fourth year is P146,000.00.

Solution:

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