Question
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
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.
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