Engineering Board Exam Reviewer · Depreciation: Straight Line and Sinking Fund Methods · easy

A machine costs P100,000, has a salvage value of P10,000, and a useful life of 9 years. Find the annual depreciation using the straight-line method.

1. P10,000
2. P9,000
3. P11,111
4. P12,000

Answer

A. P10,000

Solution

D= Cost- Salvage Life=100000-10000/9=P10,000.

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