5. A telephone company purchased a microwave radio equipment for P6 million pesos. Installation charges amounted to 3% purchase price, if the equipment shall be depreciated over a period of eight years with salvage value of 5%, determine the annual depreciation charge using straight line depreciation method. A. P765,000 B. P 834,000 C. P735,000 D. P.690.000

Fundamentals Of Construction Estimating
4th Edition
ISBN:9781337399395
Author:Pratt, David J.
Publisher:Pratt, David J.
Chapter9: Pricing Construction Equipment
Section: Chapter Questions
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5. A telephone company purchased a microwave
radio equipment for P6 million pesos. Installation
charges amounted to 3% purchase price, if the
equipment shall be depreciated over a period of
eight years with salvage value of 5%, determine
the annual depreciation charge using straight line
depreciation method.
A. P765,000
B. P 834,000
C. P735,000
D. P.690.000
Transcribed Image Text:5. A telephone company purchased a microwave radio equipment for P6 million pesos. Installation charges amounted to 3% purchase price, if the equipment shall be depreciated over a period of eight years with salvage value of 5%, determine the annual depreciation charge using straight line depreciation method. A. P765,000 B. P 834,000 C. P735,000 D. P.690.000
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