D E P R E C I T I O N M E T H O D S

Information Data Straight-line SYD Methpf Declining Balance

Original cost P 50,000 P 102,000 P P
Year purchased 2015 2016 2017 2018
Useful life 5 years 15,000 hrs 15 years 15 years
Residual/salvage value P 6,200 P 6,000 P 10,000 P 10,000
Production hours 300,000 hrs

depreciable base
cost 50,000 50,000 50,000
less: residual value 6,200 6,200
depreciable base 43,800 43,800 50,000
denominator ./5 years .n(1+n/2) .1/5=20%
.5/15
Yearly Depreciation P 8,760 P 14,600 P 10,000

Partial Periods
PPE Purchased 8/16/2018 .3/12=1/4 or .25
(for dates 1-15 in a month
as if it happened at the 1st year 2,190 3,650 2,500
beginning of the month)
(for dates 16-31 in a month .20%(50,000-2500)
as if it happened at the 2nd year 8,760 13,870 9,500
end of the month) .20%(47500-9500)
3rd year 3,650 4,563 7,600
.5/12
Acc. Dep'n 14,600.0 22,082.5 19,600.0
CV as of June 1, 2020 35,400.0 27,917.5 30,400.0
PPE sold for P29,000 on
June 1, 2020
selling price 29,000.0 29,000.0 29,000.0
Less: CV of PPE 35,400.0 27,917.5 30,400.0
Loss or Gain on sale of PPE (6,400.0) 1,082.5 (1,400.0)
 T H O D S
ining Balance
Double Declining Balance
Production method
P P
2017 S
10 years 10 years
P 8,000 15,000
30,000

50,000 50,000
6,200
43,800
.20%X2=40% .300,000 hrs
0.15
P 20,000 P 4,500.00

5,000 none

0%(50,000-2500)
19,000 none
0%(47500-9500)
15,200

39,200.0
10,800.0

29,000.0
10,800.0
18,200.0