Annual depreciation charge using the straight-line method (b) Depreciation charge during the fifth year using the sum-of-the-years-digits method.
Annual depreciation charge using the straight-line method (b) Depreciation charge during the fifth year using the sum-of-the-years-digits method.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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
(b) Depreciation charge during the fifth year using the sum-of-the-years-digits method.
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