Mrs$.$ Sippi acquired a property on $31$ December $2018$ for $P450,000.$ The asset is expected

to be used within $8$ years and will be sold at $5\%$ of the acquisition cost afterwards.

Using the given information:

a$.$ Prepare the depreciation schedules using the three methods of computing annual

depreciation $($i$.$e$.,$ straight$-$line method, sum$-$of$-$the$-$year's digit method, and double

declining balance method$).$ The depreciation schedules must show the annual

depreciation charges and book values.

b$.$ Compare the three methods in terms of the average book value of the asset in its

mid$-$life $($fourth year$).$