An asset was purchased during 2010 for P 4800. It is being depreciated using the straight...

An asset was purchased during 2010 for P 4800. It is being depreciated using the straight line method for an estimated total life of 20 years and a salvage value of P 800. What is the difference in its current book value that would have resulted if the declining balance depreciation at the rate of 10% had been used?

Topic: Depreciation
Subject: Engineering Economy

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Expert Solution

Solution :-

Depreciation per year as per straight line method = ( $4800 - $800 ) / 20 = $200

Rahul Sunny answered 5 months ago

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