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

An asset costs P80,000, has a salvage value of P8,000, and a useful life of 8 years. Find the annual depreciation using the straight-line method.

  1. P9,000
  2. P8,000
  3. P10,000
  4. P9,500

Answer

A. P9,000

Solution

D=80000-8000/8=P9,000.

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