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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 shall be depreciated over a period of 8 years with a salvage value of 5%, determine the following: (a) Annual depreciation charge using the straight-line method (b) Depreciation charge during the fifth year using the sum-of-the-years-digits method.

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 shall be depreciated over a period of 8 years with a salvage value of 5%, determine the following: (a) Annual depreciation charge using the straight-line method (b) Depreciation charge during the fifth year using the sum-of-the-years-digits method.

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 13PA: Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value...
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HI! CAN YOU HELP ME ON MY ASSIGNMENT PLEASE? PLEASE SHOW YOUR SOLUTION FOR THIS QUESTION PLEASE, THANK YOU! 2. 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 shall be depreciated over a period of 8 years with a salvage value of 5%, determine the following: (a) Annual depreciation charge using the straight-line method (b) Depreciation charge during the fifth year using the sum-of-the-years-digits method.
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