Power to a remote transmitting station is provided by a diesel-electric generator unit. The original cost of the unit P65,000. It costs P2,000 to ship the unit to the job site An additional cost of P3,000 was incurred for installation. (a) Determine the annual depreciation cost by the straight line method, if the unit has an expected life of 10 years. The salvage value of the unit at the end of its life was estimated at P5,000. (b) Determine the annual depreciation cost by the sinking fund method. Assume that the annual charge for depreciation was deposited in a fund drawing compound interest at the rate of 5%

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Q: None

A: Approach to solving the question: Detailed explanation: Examples: Key references:

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