Depreciation
Depreciation allocates the cost of an asset over its useful life. Straight-line depreciation gives the same depreciation amount each year.
$$D=\frac{C-S}{n}$$
Depreciation allocates the cost of an asset over its useful life. Straight-line depreciation gives the same depreciation amount each year.
A machine costs Php 1,200,000, has a salvage value of Php 200,000, and a life of 10 years. Find the annual depreciation and book value after 4 years.
Final answer: annual depreciation is Php 100,000 and book value after 4 years is Php 800,000.