Problem A

Alcantara acquired an equipment on June 25, 20x1 for P1,000,000. The equipment is estimated to have a useful life
of 5 years and residual value of P50,000.

Required: Prepare the depreciation table from 20x1 – 20x6 using the following depreciation methods. (Present the
computation of annual depreciation, SYD rate and double declining rate.
1) Straight line method
2) Sum-of-the-years’ digits method
3) Double declining balance method

1) Straight-line Method

Date Depreciation Accumulated Depreciation Carrying Amount

2) SYD
Depreciable SYD
Date Amount Rate Depreciation

Date Depreciation Accumulated Depreciation Carrying Amount

3) Double Declining Balance

Date Depreciation
 Date Depreciation Accumulated Depreciation Carrying Amount

Problem B
Use the information in the preceding problem, except that the machine was estimated to have a total service life of
25,000 hours and a total productive capacity of 950,000 units. Information on actual usage and production are as
follows:
Year Manufacturing Hours Units Produced
20x1 3,500 125,000
20x2 7,000 250,000
20x3 5,000 200,000
20x4 4,500 150,000
20x5 3,000 135,000
20x6 2,000 90,000

Required:
Compute for the depreciation rate using based on input and based on output then prepare the depreciation table.

1. Based on Input (Manufacturing Hours)

Date Depreciation Accumulated Depreciation Carrying Amount

2. Based on Output (Nu mber of units produced)

Date Depreciation Accumulated Depreciation Carrying Amount