Mrs. Sippi acquired a property on 31 December 2018 for P450,000. The asset is expected to be used within 8 years and will be sold at 5% of the acquisition cost afterwards. Using the given information, prepare the depreciation schedules using the three methods of computing annual depreciation (i.e., straight-line method, sum-of-the-year’s digit method, and double declining balance method). The depreciation schedules must show the annual depreciation charges and book values.

Mrs. Sippi acquired a property on 31 December 2018 for P450,000. The asset is expected to be used within 8 years and will be sold at 5% of the acquisition cost afterwards. Using the given information, prepare the depreciation schedules using the three methods of computing annual depreciation (i.e., straight-line method, sum-of-the-year’s digit method, and double declining balance method). The depreciation schedules must show the annual depreciation charges and book values.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 7P: Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset,...

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