The Nickle Company purchased an asset for P17,000 on January 2, 2021. The asset has an expected residual value P1,000.

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 3E: Depreciation Methods Nickle Company purchased three identical assets for 17,000 on January 2, 2019....
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The Nickle Company purchased an asset for P17,000 on January 2, 2021. The asset has

an expected residual value P1,000. The depreciation expense for 2021 and 2022 is shown

next for three alternative depreciation methods:

Year Method A Method B Method C

2021 P4,000 P6,400 P6,375

2022 4,000 4,800 3,984

Required

  1. Which depreciation method is the company using in each example?
  2. Compute the depreciation expense for 2023 and 2024 under each method
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