A copying machine costs P 40,000, has a life of 4 years with a salvage value of P 5,000. The following are the production output of this machine in number of copies: For the first year, 1800 copies, second year, 2200 copies, third year, 3000 copies, and fourth year, 4000 copies. What is the depreciation charge in the second year?

A copying machine costs P 40,000, has a life of 4 years with a salvage value of P 5,000. The following are the production output of this machine in number of copies: For the first year, 1800 copies, second year, 2200 copies, third year, 3000 copies, and fourth year, 4000 copies. What is the depreciation charge in the second year?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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