Question
During the construction of a highway bypass, earth-moving equipment costing P400,000 was purchased for use in transporting fill from the borrow pit. At the end
During the construction of a highway bypass, earth-moving equipment costing P400,000 was purchased for use in transporting fill from the borrow pit. At the end of the 4-year project, the equipment will be sold for P200,000. The schedule for moving fill calls for a total of 100,000 cubic feet during the project. In the first year, 40% of the total fill is required; in the second year, 30%; in the third year 25%; and in the final year, the remaining 5%. Determine
a) the units-of-production depreciation schedule
b) the declining balance depreciation schedule.
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