Calculate the depreciation expense for the year

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Reference no: EM132719096

Question - On September 1,2005 Benjiren Corporation bought a new machinery for P1,485,000. The company also paid expenditures relating to the acquisition of the machinery amounting to P45,000 for transportation. The Following information also relates to the machinery:

Residual value none - Estimated useful life 10 years

The accounting period Steve corporation ends on December 31. The following depreciation methods are being considered:

a. Sum-of-the-years-digits method

b. 150% Declining balance method

c. Double declining balance method

Required - Calculate the following using each of the depreciation method listed above. Round off all computation to the nearest peso.

1. Depreciation expense for the year 2005 and 2006.

Reference no: EM132719096

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