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  3. 1-2 . a machine that costs p68,000 is depreciated

1-2 . A machine that costs P68,000 is depreciated on a straight-line basis under the...

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Finance

1-2 . A machine that costs P68,000 is depreciated on a straight-line basis under the assumption that it would have an 8-year life and a P4,000 trade-in value. On the sixth year, it was recognized that the machine still had 5 years of remaining useful life, after which it would have an estimated P3,000 scrap value.

What is the book value of the machine at the end of the fifth year?

28,000

25,500

42,500

None of the choices

40,000

How much depreciation is charged on the 7th year?

8,000

10,000

None of the choices

5,000

6,100

--

5. These are long-term property items not having physical characteristics and which derive their value by affording special rights or advantages expected to contribute to the earnings of a business.

Group of answer choices

None of the choices

expenditures

fixed assets

intangible assets

prepaid expenses

--

4. These are expenditures incurred in forming a corporation, which may include legal fees, stock certificate costs, underwriting costs and incorporation fees.

trade name

franchise

organization cost

None of the choices

amortization

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