A company purchases an asset for Php 45,000,000 and plans to keep it for 10 years. If the salvage value is Php 1,000 at the end of the 10th year, answer the following questions.

1. What is the annual depreciation deduction using Straight-Line method?

2. What is the book value of the asset in the 5th year using Straight-Line method?

3. What is the depreciation deduction in year 6 using Sum of the Years' Digits method?

4. What is the book value of the asset in the 8th year using Sum of the Years' Digits method?

5. At 2% interest, what is the annual depreciation deduction using Sinking Fund method?

6. At 2% interest, what is the book value of the asset in the 3rd year using Sinking Fund method?

7. Using Declining Balance method, what is the annual rate of depreciation (R)?

8. If the life of the asset is given as 10,000 hours, what is the book value after 7,500 hours of operation?

A certain tool has a cost basis of Php 20,000,000 and an 15-year depreciable life. Because DB method never reaches a SV = 0, use the DB method with switchover to SL method.

9. When R = 150%, at what year did it switchover from DB to SL method?

10. Using the same R = 150%, what is the annual depreciation amounts when it switchover to SL method?

Attach your complete solutions.