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

Using the SYD method for the asset above (Cost=P50,000, Salvage=P5,000, Life=5 years), find the depreciation charge for year 3.

  1. P9,000
  2. P12,000
  3. P6,000
  4. P15,000

Answer

A. P9,000

Solution

D3=(50000-5000)×3/15=P9,000.

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