A piece of machinery costs P50,000 and has an anticipated P8,000 salvage value at the end of its six-year depreciable life. Using straight line method, what is the annual cost of depreciation?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter9: Capital Budgeting And Cash Flow Analysis
Section9.A: Depreciation
Problem 1P
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A piece of machinery costs P50,000 and has an anticipated P8,000 salvage value at the end of its six-year depreciable life. Using straight line method, what is the annual cost of depreciation?

 
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