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
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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
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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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