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

Using the SYD method for the asset above, find the book value at the end of year 2.

  1. P23,000
  2. P20,000
  3. P25,000
  4. P18,000

Answer

A. P23,000

Solution

D1=15000, D2=(50000-5000)×4/15=12000. Accumulated =27000. Book value =50000-27000=P23,000.

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