Liam acquired a machinery purchased for ₱ 1,100,000.00 and paid for transportation charge of ₱70,620.00. To install the machine in his plant, he paid installation charges amounting ₱35,000.00. Scrap value will be ₱150,000.00 and the useful life of machinery is 10 years. Charge depreciation with the Straight Line Method of depreciation. What is annual depreciation cost of the equipment in pesos?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 3EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...
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4. Liam acquired a machinery purchased for ₱ 1,100,000.00 and paid for transportation charge of ₱70,620.00. To install the machine in his plant, he paid installation charges amounting ₱35,000.00. Scrap value will be ₱150,000.00 and the useful life of machinery is 10 years. Charge depreciation with the Straight Line Method of depreciation. What is annual depreciation cost of the equipment in pesos?

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