On January 1, 2002, STD & Company purchased a large quantity of laptop computers for their associates. The cost of these computers was P10,000,000. On the date of purchase, the management estimated that the computers would last approximately 5 years and would have a residual value at that time of P1,000,000. The company used the sum-of-years' digit method of depreciation. During 2005, the management realized that technological advancements and the volume of files being uploaded had made the computers virtually obsolete and that they would have to be replaced. Management decided to depreciate the computers using the double declining balance method of depreciation in 2005. What is the depreciation for the year 2005?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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On January 1, 2002, STD & Company purchased a large quantity of laptop computers for their associates. The cost of these computers was P10,000,000. On the date of purchase, the management estimated that the computers would last approximately 5 years and would have a residual value at that time of P1,000,000. The company used the sum-of-years' digit method of depreciation. During 2005, the management realized that technological advancements and the volume of files being uploaded had made the computers virtually obsolete and that they would have to be replaced. Management decided to depreciate the computers using the double declining balance method of depreciation in 2005. What is the depreciation for the year 2005? 

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