A broadcasting corporation purchased an equipment for P53,000 and paid P1,500 for freight and

delivery charges to the job site. The equipment has a normal life of 10 years with a trade-in value

of P5,000 against the purchase of a new equipment at the end of the life.

a) Determine the annual depreciation cost by the DBM

b) Determine the book value at the end of 5 years by DBM.