Declining Balance

On January 1, ABC Trading bought an equipment costing Php100,000 with salvage

value of Php3,000 and a useful life of 5 years. ABC Trading uses the double declining
balance as its method of depreciation.
Year

Depreciation
Expense

Accum.
Depreciation

Carrying Value

Betterment vs. Extraordinary Repairs vs. Change in Estimate

ABC Trading has an equipment worth Php100,000 with a salvage value of Php5,000
and a useful life of 10 years. The equipment was bought on January 1,2013.
a) If on January 1, 2015, ABC Trading overhauled its equipment for Php7,000. What
is the new depreciation expense for the year 2015?

b) If on January 1, 2015, ABC Trading improved its equipment for Php10,000. What
is the new depreciation expense for the year 2015?

c) On January 1,2015, ABC Trading estimated that the useful life of the equipment is
15 years instead of 10. What is the new depreciation expense for the year 2015?