Equipment was purchased for P75,000. Freight charges amounted to P3,500 and there was a cost of P10,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a P15,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be P12,000 P17,700 P14,700 P12,300