The cost of equipment is P500,000 and the cost of installation is P30,000. If the salvage value is 10% of the cost of equipment at the end of 5 years, determine the depreciation charge and book value at the end of the third year using (a) straight line method, (b) declining balance method, and (c) sum of the years digit method.

The cost of equipment is P500,000 and the cost of installation is P30,000. If the salvage value is 10% of the cost of equipment at the end of 5 years, determine the depreciation charge and book value at the end of the third year using (a) straight line method, (b) declining balance method, and (c) sum of the years digit method.

Name: The cost of equipment is P500,000 and the cost of installation is P30
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Description: The cost of equipment is P500,000 and the cost of installation is P30,000. If the salvage value is 10% of the costof equipment at the end of 5 years, determine the depreciation charge and book value at the end of the thirdyear using (a) straight lin

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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