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

An asset costs P50,000, has a salvage value of P5,000, and a useful life of 5 years. Using the sum-of-years-digit (SYD) method, find the depreciation charge for year 1.

  1. P15,000
  2. P12,000
  3. P9,000
  4. P13,500

Answer

A. P15,000

Solution

SYD=15. D1=(50000-5000)×5/15=P15,000.

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