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D E P R E C I T I O N M E T H O D S Data Straight-Line SYD Methpf Declining Balance P 50,000 P 102,000 P P

The document discusses different depreciation methods including straight-line, sum-of-years' digits, declining balance, and production methods. It provides an example showing the original cost, useful life, salvage value, depreciable base, and yearly depreciation calculation for assets depreciated under each method. It also includes an example of partial period depreciation and the calculation of gain or loss on the sale of an asset where the selling price is compared to the carrying value.

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42 views2 pages

D E P R E C I T I O N M E T H O D S Data Straight-Line SYD Methpf Declining Balance P 50,000 P 102,000 P P

The document discusses different depreciation methods including straight-line, sum-of-years' digits, declining balance, and production methods. It provides an example showing the original cost, useful life, salvage value, depreciable base, and yearly depreciation calculation for assets depreciated under each method. It also includes an example of partial period depreciation and the calculation of gain or loss on the sale of an asset where the selling price is compared to the carrying value.

Uploaded by

Owncoebdief
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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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

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