Answered: s economic life of five years, its…

s economic life of five years, its salvage value is Php 500,000. Using Sum of the Years Digit Method of Depreciation, what will be its book value for the third year?

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.1SA

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Question

An equipment costs Php 1,500,000. At the end of its economic life of five years, its salvage
value is Php 500,000. Using Sum of the Years Digit Method of Depreciation, what will be its
book value for the third year?

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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