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A consortium of international telecommunication companies contracted for the purchase and installation of fiber optic cable linking Manila City and Cebu City at a total cost of P 960 million. This amount includes freight and installation charges estimated at 10% of the above total contract price. If the cable shall be depreciated over a period of 15 years with zero salvage value and money is worth 6% per annum, what is the annual depreciation charge? O P 12,345,567.56 O P 23,123,789.45 O P 31,234,789.75 O P41,244,253.40

A consortium of international telecommunication companies contracted for the purchase and installation of fiber optic cable linking Manila City and Cebu City at a total cost of P 960 million. This amount includes freight and installation charges estimated at 10% of the above total contract price. If the cable shall be depreciated over a period of 15 years with zero salvage value and money is worth 6% per annum, what is the annual depreciation charge? O P 12,345,567.56 O P 23,123,789.45 O P 31,234,789.75 O P41,244,253.40

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A consortium of international telecommunication companies contracted for the purchase and installation of fiber optic cable linking Manila City and Cebu City at a total cost of P 960 million. This amount includes freight and installation charges estimated at 10% of the above total contract price. If the cable shall be depreciated over a period of 15 years with zero salvage value and money is worth 6% per annum, what is the annual depreciation charge? O P 12,345,567.56 O P 23,123,789.45 O P31,234,789.75 O P41,244,253.40
Transcribed Image Text:A consortium of international telecommunication companies contracted for the purchase and installation of fiber optic cable linking Manila City and Cebu City at a total cost of P 960 million. This amount includes freight and installation charges estimated at 10% of the above total contract price. If the cable shall be depreciated over a period of 15 years with zero salvage value and money is worth 6% per annum, what is the annual depreciation charge? O P 12,345,567.56 O P 23,123,789.45 O P31,234,789.75 O P41,244,253.40
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