A factory has decided to purchase some new équipment for P650, 000. The equipment will be kept for 10 years before being sold. The estimated salvage value for depreciation purposes is to be P45, 000. Using straight line method, what is the depreciation at the end of 5 years?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter9: Capital Budgeting And Cash Flow Analysis
Section9.A: Depreciation
Problem 2P
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A factory has decided to purchase some new equipment for P650, 000. The equipment will be kept for 10 years
before being sold. The estimated salvage value for depreciation purposes is to be P45, 000. Using straight line
method, what is the depreciation at the end of 5 years?
Transcribed Image Text:A factory has decided to purchase some new equipment for P650, 000. The equipment will be kept for 10 years before being sold. The estimated salvage value for depreciation purposes is to be P45, 000. Using straight line method, what is the depreciation at the end of 5 years?
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