A telephone company purchased a microwave radio equipment for P 6M. Freight and installation charges amounted to 3% of the purchase price. If the equipment shall be depreciated over a period of 8 years with a salvage value of 5%, determine the following: a. Annual depreciation charge using the straight-line method. b. Depreciation charge during the 5th year using the sum of the years digit method
A telephone company purchased a microwave radio equipment for P 6M. Freight and installation charges amounted to 3% of the purchase price. If the equipment shall be depreciated over a period of 8 years with a salvage value of 5%, determine the following: a. Annual depreciation charge using the straight-line method. b. Depreciation charge during the 5th year using the sum of the years digit method
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
ChapterA: Methods Of Depreciation
Section: Chapter Questions
Problem 1P: A delivery van was bought for 18,000. The estimated life of the van is four years. The trade-in...
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3. Determine the annual
![A telephone company purchased a microwave radio equipment for P 6M. Freight and installation
charges amounted to 3% of the purchase price. If the equipment shall be depreciated over a
period of 8 years with a salvage value of 5%, determine the following:
a. Annual depreciation charge using the straight-line method.
b. Depreciation charge during the 5th year using the sum of the years digit method](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc60613c0-13a6-4400-af85-75f5b1e5679d%2Fe927b7bb-1806-49b5-8abf-6ad8c8da8c3d%2Fmfe141_processed.png&w=3840&q=75)
Transcribed Image Text:A telephone company purchased a microwave radio equipment for P 6M. Freight and installation
charges amounted to 3% of the purchase price. If the equipment shall be depreciated over a
period of 8 years with a salvage value of 5%, determine the following:
a. Annual depreciation charge using the straight-line method.
b. Depreciation charge during the 5th year using the sum of the years digit method
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