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

An asset costs P60,000, has a salvage value of P5,000, and a useful life of 5 years. Using the sinking fund method at 8% interest, find the annual depreciation charge.

  1. P9,376.10
  2. P11,000.00
  3. P9,000.00
  4. P10,000.00

Answer

A. P9,376.10

Solution

d=55000(0.08)/(1.08)5-1 P9,376.10.

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