A telephone company purchased a microwave radio equipment for P 6M. Freight and installation charges amounted to 3% of the purchase price. If the equipment shall be depreciated over a period of 8 years with a salvage value of 5%, determine the following: a. Annual depreciation charge using the straight-line method. b. Depreciation charge during the 5th year using the sum of the years digit method

A telephone company purchased a microwave radio equipment for P 6M. Freight and installation charges amounted to 3% of the purchase price. If the equipment shall be depreciated over a period of 8 years with a salvage value of 5%, determine the following: a. Annual depreciation charge using the straight-line method. b. Depreciation charge during the 5th year using the sum of the years digit method

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterA: Methods Of Depreciation

Section: Chapter Questions

Problem 1P: A delivery van was bought for 18,000. The estimated life of the van is four years. The trade-in...

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A telephone company purchased microwave radio equipment for P6,000,000. Freight and installation charges amounted to 3% of the purchased price. If the equipment shall be depreciated over a period of 8 years with a salvage value of 7%, determine the following: a. Annual depreciation using the straight line method b. Depreciation charge during the fifth year using the sum of the years digit method
1. A telephone company purchased a microwave radio equipment for 6MPH.. Freight and installation charges amounted to 3% of the purchase price. If the equipment shall be depreciated over a period of 5 years with a salvage value of 8%. tabulate the depreciation using a) straight line method b) sinking fund method c) SYD method