1 An equipment costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the end of the period. Compute the depreciation charge and its book value after 10 years using the sum of years digit method. Ans. d = P11,000 BV = P57,500 Problem 2 An asset costing P50,000 has a life expectancy of 6 years and an estimated salvage value of P8,000. Calculate the depreciation charge at the end of the fourth period using fixed-percentage method. Problem 3 (ME Oct. 1997) Ans. P5,263.87 An asset is purchased for P120,000.00. Its estimated economic life is 10 years, after which it will be sold for P12,000.00. Find the depreciation for the first year using the sum-of-the-years digit method (SOYD). Problem 4 (ME April 1998) Ans. P19,636.36 An asset is purchased for P9,000.00. Its estimated economic life is 10 years, after which it will be sold for P1,000.00. Find the book value during the third year if the sum-of-the-year's digit (SOYD) depreciation is used. Problem 5 (CE Nov. 1998) Ans. P5,072.73 A machine having a first cost of P60,000.00 will be retired at the end of 8 years. Depreciation cost is computed using a constant percentage of the declining book value. What is the total cost of depreciation, in pesos, up to the time the machine is retired if the annual rate of depreciation is 28.72%? Ans. P56,001.54