Question 1181849
Here's the breakdown of the depreciation calculations:

1. **Calculate the cost of the cable (excluding freight and installation):**

*   Let 'C' be the cost of the cable.
*   The total contract price (P980 million) includes freight and installation, which is 12% of the total contract price.
*   So, 1.12C = P980,000,000
*   C = P980,000,000 / 1.12 = P875,000,000

2. **Calculate the annual depreciation:**

*   Depreciable amount = Original cost - Salvage value
*   Depreciable amount = P875,000,000 - (0.01 * P875,000,000) = P875,000,000 - P8,750,000 = P866,250,000
*   Annual depreciation = Depreciable amount / Useful life
*   Annual depreciation = P866,250,000 / 15 years = P57,750,000

3. **Depreciation charge during the 13th year:**

*   With the straight-line method, the depreciation charge is the *same* each year.
*   Therefore, the depreciation charge during the 13th year is P57,750,000.

4. **Depreciation charges after 10 years:**

*   Total depreciation after 10 years = Annual depreciation * 10 years
*   Total depreciation after 10 years = P57,750,000 * 10 = P577,500,000

5. **Book value after 13 years:**

*   Total depreciation after 13 years = Annual depreciation * 13 years
*   Total depreciation after 13 years = P57,750,000 * 13 = P750,750,000
*   Book value after 13 years = Original cost - Total depreciation after 13 years
*   Book value after 13 years = P875,000,000 - P750,750,000 = P124,250,000

**Summary:**

*   Depreciation charge during the 13th year: P57,750,000
*   Depreciation charges after 10 years: P577,500,000
*   Book value after 13 years: P124,250,000