DEPRECIATION

A consortium of international communications companies contracted for the purchase and installation of a fiber optic cable linking two major Asian cities at a total cost of P945,721,690. Freight and installation charges at 10% of the above total contract price with salvage value of 11.5% of the first cost. If the depreciated value over a period of 4 years is P684,951,377. Using Sum of The Years-Digits Method of Depreciation, determine the following:

5.Length of useful life.

6.Depreciation during the 9thyear.

7.Total depreciation after 13 years.

8.Book Value after 10 years.