n equipment was purchased on January 1, 2017 for P50, 000 with a salvage value of P5, 000 and useful life of 10 years

Accounting Aug 14, 2020

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

Expert Solution

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

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