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Solution: Calculate the annual depreciation cost by sinking-fund method at 4% interest

(Last Updated On: December 8, 2017)

Calculate the annual depreciation cost by sinking-fund method at 4% interest

Problem Statement:

An equipment costs P10,000 with a salvage value of P500 at the end of 10 years. Calculate the annual depreciation cost by sinking-fund method at 4% interest.

  • A. P791.26
  • B. P792.61
  • C. P726.17
  • D. P771.26

Problem Answer:

The annual depreciation cost by sinking-fund method at 4% interest is P791.26.

Solution:

Solution: Calculate the annual depreciation cost by sinking-fund method at 4% interest

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