9. Among the intangible assets, may be the most difficult to account in terms of valuation. 10. A patent is usually amortized over its life instead of its legal life Il. Computation of depreciation An equipment costing P120, 000 was purchased on January 3. It has an estimated useful life of 5years, with a salvage value of P8, 000. Required: Compute the depreciation of the asset using : 1. straight-line method 2 . declining balance method III. The beginning inventory, purchases and sales of a particular inventory item of Carlo Company during the year were as follows: Units Unit Price January 1 Inventory 150 P12 June 14 Purchases 200 14 July 3 Sales 100 18 Sept 1 Purchase 300 15 October 22 Sale 200 16 Dec 14 Purchases 850 19