Part 2: Depreciation Problem Violeta Pitular operates a business center in Cabanatuan City. On January 1, 2011, she bought an office equipment at a cost of P34,000. It has an expected useful life of 6...

Part 2: Depreciation Problem Violeta Pitular operates a business center in Cabanatuan City. On January 1, 2011, she bought an office equipment at a cost of P34,000. It has an expected useful life of 6 years and a salvage value of P4,000. 1. How much of the asset is subject to depreciation? 2. What will be the annual depreciation expense? 3. What is the adjusting entry to recognize depreciation for the year? 4. Determine the book value of the asset at the end of the year. 5. What is the book value of the asset after it has been depreciated for 6 years?