Answer to Question #261553 in Economics for adam permolan

Question

A four-storey industrial building has a depreciated value of P890,000 at the start of 18th year and has a salvage value P50,000. What is the total depreciation during the 8th year? Use double declining balance method.

Answer 1

$$\frac{890000-50000}{18}=46667$$

$$\frac{46667}{890000}\times 100=5.2$$

1st

$$2\times0.052\times890000=92560$$

2nd

$$2\times0.052\times(890000-92560)=82834$$

3d

$$2\times0.052\times714606=74319$$

4th

$$2\times0.052\times640287=66590$$

5th

$$2\times0.052\times573697=59664$$

6th

$$2\times0.052\times514033=53459$$

7n

$$2\times0.052\times460574=47900$$

8t

$$2\times0.052\times412674=42918$$