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Homework answers / question archive / n equipment was purchased on January 1, 2017 for P50, 000 with a salvage value of P5, 000 and useful life of 10 years
n equipment was purchased on January 1, 2017 for P50, 000 with a salvage value of P5, 000 and useful life of 10 years. The company has a semi-annual accounting period. The amount of depreciation to be recorded on June 30, 2017 is
Select one:
a. P2,250
b. P2,500
c. P5,000
d. P4,500
Computation of the amount of depreciation:-
Depreciation = (cost - Salvage value) / Estimated useful life
= (50,000 - 5,000) / 10
= 45,000 / 10
= 4,500
Correct option is d). P4,500
