22. A machine, initially costing Php 155000, is set to depreciate Php 20000 every year using sinkingfund method. How much must be invested every year to replace the asset with a better but moreexpensive machine costing Php 250000 after 5 years at an annual rate of 5%.a. Php 41346.88b. Php 36547.78c. Php 44487.37d. Php 37,192.61е.None of the above

The sinking cost method is a method of depreciation which we need to calculate here.

22. A machine, initially costing Php 155000, is set to depreciate Php 20000 every ye fund method. How much must be invested every year to replace the asset with expensive machine costing Php 250000 after 5 years at an annual rate of 5%. a. Php 41346.88 b. Php 36547.78 C. Php 44487.37

22. A machine, initially costing Php 155000, is set to depreciate Php 20000 every ye fund method. How much must be invested every year to replace the asset with expensive machine costing Php 250000 after 5 years at an annual rate of 5%. a. Php 41346.88 b. Php 36547.78 C. Php 44487.37

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

22. A machine, initially costing Php 155000, is set to depreciate Php 20000 every year using sinking
fund method. How much must be invested every year to replace the asset with a better but more
expensive machine costing Php 250000 after 5 years at an annual rate of 5%.
a. Php 41346.88
b. Php 36547.78
c. Php 44487.37
d. Php 37,192.61
е.
None of the above

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