A consortium of international communications companies contracted for the purchase and installation of a fiber optic cable linking two major Asian cities at a total cost of P960 Million. This amount includes freight and installation charges at 10% of the total contract price. If the cable depreciated over a period of 15 years with zero salvage value, what is the depreciation charge during the 8th year using the sum of years digits method.

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Q: A consortium of international communications companies contracted for the purchase and installation…

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A: Solution concept sum of years digit method Under sum of years depreciation is charged on the basis…

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A: i. Reference: Working Notes: Reference:

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