1.) On March 31, 2021, Entity A acquires equipment for a total cost of P1,050,000. The equipment is estimated to have a useful life of 5 years and a residual value of P50,000. Compute for the Depreciation Expense on December 31, 2021 using straight line Method Single line text.

2.) Compute for the total amount of Equipment

Illustration: Entity A acquires equipment on January 1, 20x1. Information on costs is as follows: Purchase price, gross of trade discount Trade discount available Freight costs Testing costs Net disposal proceeds of samples generated during testing Present value of estimated costs of dismantling the equipment at the end of its useful life 1,000,000 10,000 20,000 30,000 5,000 6,209