An asset was purchased three years ago at a cost of P5,000. It was estimated to have a useful life of 8 years with a salvage value of P250 at the end of the time. It is now of no future use and can be sold for only P720. a. Straight-line method b. Sum-of-the-Years'-Digits (SYD) Method

An asset was purchased three years ago at a cost of P5,000. It was estimated to have a useful life of 8 years with a salvage value of P250 at the end of the time. It is now of no future use and can be sold for only P720. a. Straight-line method b. Sum-of-the-Years'-Digits (SYD) Method

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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Question

An asset was purchased three years ago at a
cost of P5,000. It was estimated to have a
useful life of 8 years with a salvage value of
P250 at the end of the time. It is now of no
future use and can be sold for only P720.
a. Straight-line method
b. Sum-of-the-Years'-Digits (SYD) Method

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