QUESTION 11 Buckle Company is considering different depreciation methods that should be applied to its factory...

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Question

QUESTION 11

Buckle Company is considering different depreciation methods that should be applied to its factory equipment. Depreciation expense for five years using different methods are presented below:

Answer 1

Answer #1

Depreciation under double declining balance for first year = Asset cost X 40%

160,000 = Asset cost X 40%

Asset cost = 400,000

Residual value = Asset cost - total depreciation under straight line method = 400,000 - 70,000 X 5 = 50,000

Answer is c. Php 50,000

Answer 2

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