1. NTC purchased new equipment on January 1, 2014. The equipment cost P12,000, had an estimated useful life of four years, and had a residual value of P400. Using 200 percent declining balance depreciation, record depreciation expense at the end of 2015

2. ABS purchased new equipment on January 1, 2014. The equipment cost P4,400, had an estimated useful life of four years, and had a salvage value of P200. Using the depreciation of the sum of the digits of the years,  record depreciation expense at the end of 2015

3. Entity A purchased P890,000 worth of equipment on January 1, x1. The equipment has a useful life of 10 years and a salvage value of P90,000. Entity A uses the straight-line method of depreciation. How much are the depreciation expenses in 20x1 and the book value of the equipment as of December 31, 20x2 respectively? [Depreciation expense: book value]

Answer rating: 100% (QA)

1 To calculate the depreciation expense using the 200 percent declining balance method we first need to determine the depreciation rate The depreciation rate for the declining balance method is twice ... View the full answer