n electronics balance costs P98,000 and has an estimated salvage value of P6,000 at the end of its 13 years lifetime. What should be the depreciation after three years, using the sum of the years digit in solving for the depreciation?

Q: Cost of machine = P 1.4 MUseful life = 8 yearsSalvage value = P10, 000Determine the 4thyear…

A:

Q: Using straight-line depreciation, what is the depreciation charge in the fifth year for an asset…

A:

Q: Using declining-balance depreciation with d = 18 percent, what is the depreciation charge in the 9…

A: Initial cost = $156400  Depreciation, d= 18 percent

Q: Please show all cash flow diagrams and math calculations

A: First cost82000    Salvage value15000   Depreciable value    First cost - Salvage value67000…

Tax Significance of Depreciation

While calculating taxes, depreciation is the method used to allocate the cost of a tangible or immovable asset over the useful life of an asset. In other words, allocate part of that cost to the times when tangible assets help generate revenue or sales. By recording the depreciation of an asset, depreciation reduces the amount of taxes a company or business pays in tax deductions.