A central air conditioning unit was installed on January 1, 2000 at an initial cost...
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Accounting
A central air conditioning unit was installed on January 1, 2000 at an initial cost of P650,000 and was expected to have a salvage value of P50,000 after a life of 7 years. a. What amount of depreciation had accumulated in a sum-of-the-years-digit method at the end of 2003? b. Using the declining balance method, determine the depreciation charged for 2004 and the book value at the end of 2004. c. If the equipment was sold on Jan 1, 2005 for P100,000, what amount of loss would result from this sale if sinking fund method was being used with interest of 12% per year?
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