Principles of Accounting
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The price would be the sum of the present values of each of the sums at a five per cent rate of interest, and this gives $138. 45. The following table represents the same information for this asset on the present value of future reve- nue method as was given in the preceding table.
(I) (2) (3) (4) (5) (6) YEAR BOOK VALUE BEGINNING OF YEAR REVENUE DEPRECIATION CHARGE NET REVENUE RATE OF NET REVENUE TO BOOK VALUE I $138. 45 $25. 00 $18. 08 $6. 92 5% 2 120. 37 25. 00 18. 98 6. 02 5 3 101. 39 2O. O...O 14-93 5. 07 5 4 86. 46 2O. OO 15. 68 4. 32 5 5 70. 78 O. OO 3-54 3-54 5 6 74-32 iS. OO 14. 29 3-7i 5 7 60. 03 18. 00 15. 00 3. 00 5 8 45-03 14. 00 ix-75 2. 25 5 9 33-28 14. 00 12-33 1. 67 5 10 20. 95 22. OO 20. 95 1. 05 5 Total ....
$176. 00 $138-45 $37-55 1 See table for apportionment of annuity payments on page 377.
METHODS OF MEASURING DEPRECIATION 523 The values in column (2) are found by obtaining the discounted values of the remaining revenue items at the beginning of each year. Column (3) is the revenue for each year, column (4), the depreciation (difference between book value beginning and end of each year), column (5), the net revenue, and column (6), the rate of net revenue to book value.
What to read after Principles of Accounting?
You can find similar books in the "Read Also" column, or choose other free books by William Andrew Paton to read onlineMoreLess
To quickly assess the difficulty of the text, read a short excerpt:
The price would be the sum of the present values of each of the sums at a five per cent rate of interest, and this gives $138. 45. The following table represents the same information for this asset on the present value of future reve- nue method as was given in the preceding table.
(I) (2) (3) (4) (5) (6) YEAR BOOK VALUE BEGINNING OF YEAR REVENUE DEPRECIATION CHARGE NET REVENUE RATE OF NET REVENUE TO BOOK VALUE I $138. 45 $25. 00 $18. 08 $6. 92 5% 2 120. 37 25. 00 18. 98 6. 02 5 3 101. 39 2O. O...O 14-93 5. 07 5 4 86. 46 2O. OO 15. 68 4. 32 5 5 70. 78 O. OO 3-54 3-54 5 6 74-32 iS. OO 14. 29 3-7i 5 7 60. 03 18. 00 15. 00 3. 00 5 8 45-03 14. 00 ix-75 2. 25 5 9 33-28 14. 00 12-33 1. 67 5 10 20. 95 22. OO 20. 95 1. 05 5 Total ....
$176. 00 $138-45 $37-55 1 See table for apportionment of annuity payments on page 377.
METHODS OF MEASURING DEPRECIATION 523 The values in column (2) are found by obtaining the discounted values of the remaining revenue items at the beginning of each year. Column (3) is the revenue for each year, column (4), the depreciation (difference between book value beginning and end of each year), column (5), the net revenue, and column (6), the rate of net revenue to book value.
What to read after Principles of Accounting?
You can find similar books in the "Read Also" column, or choose other free books by William Andrew Paton to read onlineMoreLess
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