# Solution: Determine the depreciation cost during the 5th year using SYD.

A telephone company purchased a microwave radio equipment for P6 million, freight and installation charges amounted to 4% of the purchased price.

#### Problem Statement: ECE Board April 1999

A telephone company purchased a microwave radio equipment for P6 million, freight and installation charges amounted to 4% of the purchased price. If the equipment will be depreciated over a period of 10 years with a salvage value of 8%, determine the depreciation cost during the 5th year using SYD.

• A. P626,269.09
• B. P623,209.09
• C. P625,129.09
• D. P624,069.89

The depreciation cost during the 5th year using SYD is P626,269.09.

Solution:

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