Solution: What is the total depreciation in the first three years using straight-line method?

An asset is purchased for P500,000.00. The salvage value in 25 years is P100,000.00. What is the total depreciation in the first three years using straight-line method?

What is the total depreciation in the first three years using straight-line method?

Problem Statement: ME Board April 1998

An asset is purchased for P500,000.00. The salvage value in 25 years is P100,000.00. What is the total depreciation in the first three years using straight-line method?

  • A. P45,000.00
  • B. P46,000.00
  • C. P47,000.00
  • D. P48,000.00

Problem Answer:

The total depreciation in the first three years using straight-line method is P48,000.00.

Solution:

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