Do not Copy Travis Co. decided set up a corporation issuing 5000 shares of P20 par ordinary stocks trading at P25 in the stock market in exchange for an equipment with a fair value of 150,000....

Do not Copy

Travis Co. decided set up a corporation issuing 5000 shares of P20 par ordinary stocks trading at P25 in the stock market in exchange for an equipment with a fair value of 150,000. Similarly, Travis Co. has a similar equipment which it bought for 160,000. The equipment is depreciated over 5 years using the straight-line method and it has no salvage value. How much is the depreciation on the first year? *