A factory has decided to purchase some new equipment for P650, 000. The equipment will be kept for 10 years before being sold. The estimated salvage value for depreciation purposes is to be P45, 000. Using declining balance method, what is the depreciation on the 5th year? a.) P 52, 553 b.) P 40, 446 c.) P 50, 000 d.) P 45, 000

A factory has decided to purchase some new equipment for P650, 000. The equipment will be kept for 10 years before being sold. The estimated salvage value for depreciation purposes is to be P45, 000. Using declining balance method, what is the depreciation on the 5th year? a.) P 52, 553 b.) P 40, 446 c.) P 50, 000 d.) P 45, 000

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 3CE

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A factory has decided to purchase some new equipment for P650, 000. The equipment will be kept for 10 years before being sold. The estimated salvage value for depreciation purposes is to be P45, 000. Using declining balance method, what is the depreciation on the 5th year? what is the answer: P 45, 000 P 50, 000 P 52, 553 P 40, 446