What are the book values after three years

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Problem - Due to the large volume of COVID-19 tests conducted daily, an RT- PCR Machine which costs around P2,400,000 is to be depreciated over a 3-year period only, with an estimated salvage value of P100,000. There are only two depreciation methods to choose from: 1) the 150% Declining Balance Method and 2) the Double Declining Balance (DDB) Method.

a) What are the book values after 3 years for the two methods? Write the book values for each method below, labelled correctly and show the complete solution in your solution sheet.

b) How do the estimated salvage value and the calculated book values compare in value after 3 years?

c) Which among the two methods writes off more of the first cost over 3 years?

Reference no: EM132770079

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