Bee Company uses the composite method of depreciation and has a composite rateof 25%.

During 2005, it sold assets with an original cost of P100,000 and residual value of P20,000 for

P80,000 and acquired P60,000 worth of new assets with residual value of P10,000. The

Total cost 250,000

Total residual value 30,000

The above original group includes the assets sold in 2005 but not the assets purchased in 2005.

What was the depreciation in 2005?

A. 62,500 C. 47,500

B. 52,500 D. 46,500