The first cost of a certain machine is P20,000 with a salvage value of P1,000 at the end of its useful life. If the book value at the end of 6 years is P4,455. Calculate the useful life "n" by Sum of Year Method in depreciation.

The first cost of a certain machine is P20,000 with a salvage value of P1,000 at the end of its useful life. If the book value at the end of 6 years is P4,455. Calculate the useful life "n" by Sum of Year Method in depreciation.

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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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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