Engineering Board Exam Reviewer · Depreciation: Declining Balance and Sum-of-Years-Digit Methods · easy

Using the declining balance method with rate 30%, find the depreciation charge for year 1 on an asset costing P100,000.

  1. P30,000
  2. P70,000
  3. P25,000
  4. P35,000

Answer

A. P30,000

Solution

D1= Cost× r=100000(0.30)=P30,000.

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