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telephone company purchased a microwave radio equipment for P6,000,000. Freight and installation charges amounted to 3% of the purchased price. If the equipment is depreciated over an eight-year period with a salvage value of 5% of Co,  Using SLDM(at 10%): The annual depreciation charge is:  P 513,383.83     B. P 733,875.00                       C. P 514,170.82                       D. P 498,430.90   The book value at the end of 5 years is:    P 3,040,935.71                   B. P 2,957,029.51                   C. P 2,510,625.00                   D. P 3,045,740.38

telephone company purchased a microwave radio equipment for P6,000,000. Freight and installation charges amounted to 3% of the purchased price. If the equipment is depreciated over an eight-year period with a salvage value of 5% of Co,  Using SLDM(at 10%): The annual depreciation charge is:  P 513,383.83     B. P 733,875.00                       C. P 514,170.82                       D. P 498,430.90   The book value at the end of 5 years is:    P 3,040,935.71                   B. P 2,957,029.51                   C. P 2,510,625.00                   D. P 3,045,740.38

FINANCIAL ACCOUNTING
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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A telephone company purchased a microwave radio equipment for P6,000,000. Freight and installation charges amounted to 3% of the purchased price. If the equipment is depreciated over an eight-year period with a salvage value of 5% of Co, 

Using SLDM(at 10%):

The annual depreciation charge is: 

  1. P 513,383.83     B. P 733,875.00                       C. P 514,170.82                       D. P 498,430.90

 

The book value at the end of 5 years is: 

 

  1. P 3,040,935.71                   B. P 2,957,029.51                   C. P 2,510,625.00                   D. P 3,045,740.38
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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