GEAS 26

certain machine cost P40,000 and has a life of 4 years and a salvage value of P5000. The production output of this machine in units per year is first year 1800 units, second year2200 units, third year 3000, and fourth year 4000 units. If the units produced are of uniform quality, what is the depreciation charge at the end of 4th year?

• P12,727.27

• P15,350.23

• P16,420.43

• P17,200.98

A lathe machine cost P300,000 with a salvage value of P15,000 is expected to last for 285000 hours in a period of 5 years. In the first year of service it was used for 8000 hours. Compute the book value of the machine at the end of the first year.

• P292,000

• P200,000

• P250,000

• P323,000

A machine costing P280,000 has a useful life of 20,000 hrs. at the end of which its salvage value is P30,000. In the first year, it was used for 2080 hrs, in the second year, 3160 hrs. Find the second depreciation cost in pesos.

• P23,520

• P25,252

• P39,500

• P35,400

An equipment costs P400,000 and has a life of 30,000 hrs at the end of which its salvage value is x pesos. In the first year, it was used for 6240 hrs. The book value at the end of the first year was P325,120. Find the value of x.

• P40,629

• P30,420

• P40,000

• P30,000

An engineering firm from purchased, 12 years ago, a heavy planner for P50,000 with no salvage value. As the life of the planner was 20 years, a straight line depreciation reserve has been provided on that basis. Now the firm wishes to replace the old planner with a new one possessing several advantages. It can sell the old planner for P10,000. The new one will cost P100,000. How much new capital will be required to make the purchase?

• P60,000

• P55,000

• P66,000

• P57,000

Ten years ago, a contractor was able to purchase a crane whose capacity is 2000 tons costing P125 per ton. The life was estimated to be 15 years with a salvage value of 10% of the cost. A market has been found for the old crane for P80,000. If the depreciation has been figured on a straight line basis what is the difference between the depreciation book value of the old crane and its sale value.

• P10,000

• P30,000

• P15,000

• P20,000

What is the nominal value of interest compounded continuously for a period of 5 years of an equal payment series if the capital recovery factor is equal to 0.2385787.

• 4%

• 5%

• 6%

• 8%

What is the nominal rate of interest compounded continuously for a period of 5 years of an equal payment series if the sinking fund factor is equal 0.180519?

• 4%

• 5%

• 6%

• 8%

Compute the number of years so that the capital recovery factor of a uniform payment series be equal to 0.218638 if money is worth 3% compounded continuously.

• 5

• 4

• 6

• 3

A manufacturing firm wishes to give each 80 employee a holiday bonus. How much is needed to invest monthly for a year at 12% nominal interest rate, compounded monthly, so that each employee will receive a P2000 bonus?

• P12,608

• P12,615

• P12,600

• P12,300