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Questions -
Q1. Teacher Tal owns a laptop that is already 4 years old. It was previously bought at the price of P47,000. Upon purchase, Teacher Tal was informed that it can still be re-sold for P5,000 after 6 years. Compute the depreciation expense per year assuming that Teacher Tal accepted the estimated useful life of 6 years and the residual value of P5,000. Use straight-line method.
2. Continuing the problem above, compute the book value of the asset at the end of the 4th year
3. Assuming that the laptop was sold for P20,000 at the end of the 4th year, compute the gain or loss on the disposal of the fixed asset. If loss, express using a negative value.
4. Instead of selling the laptop for P20,000, Teacher Tal opted to trade in the laptop for a newer version that costs P65,000. The trade-in value of the old laptop is P9,600. How much will Teacher Tal pay for the new laptop?
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