A company bought a telecommunication equipment for P280,000. Other expenses including installation amount to P35,000. The...

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A company bought a telecommunication equipment for P280,000. Other expenses including installation amount to P35,000. The equipment is set to have 12 years with the salvage value at the end of life of P23,000. Determine the depreciation charge during the 5th year and the book value at the end of the 8th years by (a) declining balance method (b) straight-line method (c) sinking fund method with i=13% (d) double declining balance method and (e) SYD method. A company bought a telecommunication equipment for P280,000. Other expenses including installation amount to P35,000. The equipment is set to have 12 years with the salvage value at the end of life of P23,000. Determine the depreciation charge during the 5th year and the book value at the end of the 8th years by (a) declining balance method (b) straight-line method (c) sinking fund method with i=13% (d) double declining balance method and (e) SYD method.

Answer rating: 100% (QA)

To calculate the depreciation charge for each method we need to substitute the given values into the respective formulas Lets calculate the depreciati... View the full answer