A telephone company purchased a microwave radio equipment for P6,000,000. Freight and installation charges amounted to 3% of the purchase price. If the equipment shall be depreciated over a period of 8 years with a salvage value of 5%, determine the following: (a) Annual depreciation charge using the straight

A telephone company purchased a microwave radio equipment for P6,000,000. Freight and installation charges amounted to 3% of the purchase price. If the equipment shall be depreciated over a period of 8 years with a salvage value of 5%, determine the following: (a) Annual depreciation charge using the straight

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

A telephone company purchased a microwave
radio equipment for P6,000,000. Freight and
installation charges amounted to 3% of the
purchase price. If the equipment shall be
depreciated over a period of 8 years with a
salvage value of 5%, determine the following: (a)
Annual depreciation charge using the straight
line method. (b) Depreciation charge during the
5th
year using SYD method.

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