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Activity 4 1. A truck costs P1,000,000 and has a scrap value of P1,000,000 after 10 years. Using The three methods, prepare the depreciation and the book value each year. Compute the total accumulated depreciation using the three methods: Straight Line (SL) Method. Declining Balance (DB) Method. Sum-of-the-Year's-Digit Method. 2. Based from your computation on the depreciation in number 1, which method would you select and why?

Activity 4 1. A truck costs P1,000,000 and has a scrap value of P1,000,000 after 10 years. Using The three methods, prepare the depreciation and the book value each year. Compute the total accumulated depreciation using the three methods: Straight Line (SL) Method. Declining Balance (DB) Method. Sum-of-the-Year's-Digit Method. 2. Based from your computation on the depreciation in number 1, which method would you select and why?

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 8MC: On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was...
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Year Book Value Depreciation Depreciation (Beginning of the Year) Factor 1 P600,000- P60,000=540,000 5/15 P180,000 2 360,000 216,000 4/15 144,000 3 3/15 108,000 108,000 2/15 72,000 36,000 4 36,000 1/15 Activity 4 1. A truck costs P1,000,000 and has a scrap value of P1,000,000 after 10 years. Using The three methods, prepare the depreciation and the book value each year. Compute the total accumulated depreciation using the three methods: Straight Line (SL) Method. Declining Balance (DB) Method. Sum-of-the-Year's-Digit Method. 2. Based from your computation on the depreciation in number 1, which method would you select and why?
Transcribed Image Text:Year Book Value Depreciation Depreciation (Beginning of the Year) Factor 1 P600,000- P60,000=540,000 5/15 P180,000 2 360,000 216,000 4/15 144,000 3 3/15 108,000 108,000 2/15 72,000 36,000 4 36,000 1/15 Activity 4 1. A truck costs P1,000,000 and has a scrap value of P1,000,000 after 10 years. Using The three methods, prepare the depreciation and the book value each year. Compute the total accumulated depreciation using the three methods: Straight Line (SL) Method. Declining Balance (DB) Method. Sum-of-the-Year's-Digit Method. 2. Based from your computation on the depreciation in number 1, which method would you select and why?
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