Answer to Question #193843 in Financial Math for King

Question

Construct a depreciation schedule for the following problems

2.) Donald manufacturing Inc purchased new equipment totaling₱648,000.Freight charges were₱2200 and installation amounted to ₱1800. The equipment is expected to last 4 years and have a residual value of ₱33,000. If the company elects to use the straight line method of depreciation , prepare a depreciation schedule for these assets

Answer 1

Subtract the asset's salvage value from its cost to determine the amount that can be depreciated:

$648000-3300-2200-1800=P\ 611000$

Divide this amount by the number of years in the asset's useful lifespan:

$611000/4=P\ 152750$

Divide by 12 to get the monthly depreciation for the asset:

$152750/12=P\ 12729.17$