Answered: An asset costing P50,000 has a life…

An asset costing P50,000 has a life expectancy of 6 years and an estimated salvage value of P8000. Calculate the depreciation charge at the end of the fourth period using fixed-percentage method.

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 6MC: At the end of the expected useful life of a depreciable asset with an estimated 15% residual value,...

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Question

An asset costing P50,000 has a life expectancy of 6 years and an estimated salvage value of P8000. Calculate the depreciation charge at the end of the fourth period using fixed-percentage method.

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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