On September 1,2005 Benjiren Corporation bought a new machinery for P1,485,000. The company also paid expenditures relating to the acquisition of the machinery amounting to P45,000 for transportation. The Following information also relates to the machinery:

Residual value none

Estimated useful life10 years

The accounting period Steve corporation ends on December 31. The following depreciation methods are being considered:

a.Sum-of-the-years-digits method

b.150% Declining balance method

c.Double declining balance method

Required:

Calculate the following using each of the depreciation method listed above. Round off all computation to the nearest peso.

1.Depreciation expense for the year 2005 and 2006.