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1. Power to a remote transmitting station is provided by a Diesel-electric generator unit. The original cost of the unit is P 65, 000. It

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1. Power to a remote transmitting station is provided by a Diesel-electric generator unit. The original cost of the unit is P 65, 000. It costs P 2000 to ship the unit to the job site. An additional cost of P 3000 was incurred for installation. a. Determine the annual depreciation cost by the straight-line method if the unit has an expected life of 10 years. The salvage value of the unit at the end of its life was estimated at P 5000. b. Determine the annual depreciation cost by the sinking fund method. Assume the annual charge for depreciation was deposited in a fund drawing compound interest at the rate of 5%

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