2. Pedro Reyes purchased a delivery vehicle on April 1, 2016 amounting to PHP250,000. It is estimated that the vehicle will be useful for 10 years. The vehicle can be sold for PHP10,000 at the end of its useful life. If the accounting period being reported by Pedro is one (1) year from January-December 2016, how much is the depreciation expense?
2. Pedro Reyes purchased a delivery vehicle on April 1, 2016 amounting to PHP250,000. It is estimated that the vehicle will be useful for 10 years. The vehicle can be sold for PHP10,000 at the end of its useful life. If the accounting period being reported by Pedro is one (1) year from January-December 2016, how much is the depreciation expense?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:2. Pedro Reyes purchased a delivery vehicle on April 1, 2016 amounting to PHP250,000. It is
estimated that the vehicle will be useful for 10 years. The vehicle can be sold for PHP10,000 at
the end of its useful life. If the accounting period being reported by Pedro is one (1) year from
January-December 2016, how much is the depreciation expense?
Transcribed Image Text:Test I. Instructions: Compute the depreciation expense for the following independent cases.
Use the straight line method of depreciation.
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