Example No$.8$

An equipment costs $P500,000$ and has a salvage value of P$25,000$ after its $25$ years of useful life. Using double declining balanced method, what will be the book value of the equipment at the end of $8$ years?

Answer: $BV=P256,609\mathrm{.}44$

Example No$.9$

A telephone company purchased a microwave radio equipment for P $6$ M $.$ Freight and installment 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 depreciation charge during the $5$th year using the sum of the years digit method.