7. An asset was purchased for P 150,000 and retired at the end of 15 years with a salvage value of P 5,000. The annual operating cost was P 18,000. Determine the annual cost of the asset based on an interest rate of 8%. A. P 29,536 B. P 35,340 C.P 441,753.55 D. P 369,195.45

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...
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7. An asset was purchased for P 150,000 and retired at the end of 15 years with a salvage
value of P 5,000. The annual operating cost was P 18,000. Determine the annual cost of
the asset based on an interest rate of 8%.
A. P 29,536
B. P 35,340
C. P 441,753.55
D. P 369,195.45
Transcribed Image Text:7. An asset was purchased for P 150,000 and retired at the end of 15 years with a salvage value of P 5,000. The annual operating cost was P 18,000. Determine the annual cost of the asset based on an interest rate of 8%. A. P 29,536 B. P 35,340 C. P 441,753.55 D. P 369,195.45
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