PPE; Semi Expendable; Life Years

There are three factors an entity must consider in determining depreciation except

• depreciation cost

• initial cost

• useful life

• expected residual life

CLASSIFICATION OF AN ITEM BASED ON COST: Semi-Expendable, High-Value

• P50,000

• P5,000

• P4,999

• P49,999

Answer explanation

Semi-Expendable, High-Value - more than P5,000 but less than P50,000.00

CLASSIFICATION OF AN ITEM BASED ON COST: Semi-Expendable, Low-Value

• P50,000

• P5,001

• P4,999

• P49,999

Answer explanation

1. Semi-Expendable, Low-Value

P5,000.00 or less

CLASSIFICATION OF AN ITEM BASED ON COST: Property, Plant and Equipment (PPE)

• P50,000

• P5,000

• P4,999

• P49,999

Answer explanation

PPE - P50,000.00 and above

Has

COA standardized the useful life in terms of

the number of years for government vehicles,

computers, printers, etc.?

just type your answer ---> YES or NO