1351. Under the depletion allowance method in computing depreciation, the depletion charge is equal to either ________________ which ever is smaller ?

A. Fixed percentage of gross income or the net taxable income
B. Fixed percentage of gross income or 50% of the net taxable income
C. 50% of the fixed percentage of gross income or 50% of the net taxable income
D. 50% of the fixed percentage of gross income or the net taxable income
✅ The correct answer is option B.

1358. ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method ?

A. 7 eyars
B. 8 years
C. 9 years
D. 10 years
✅ The correct answer is option C.

1359. A manufacturer produces certain items at a labor cost of P 115 each, material cost of P 76 each and variable cost of P 2.32 each. If the item has a unit price of P 600, how many units must be manufactured each month for the manufacturer to break even if the monthly overhead is P428,000 _________________?

A. 1,033
B. 1,037
C. 1,043
D. 1,053
✅ The correct answer is option D.

1360. Which is NOT an essential element of an ordinary annuity ?

A. The amounts of all payments are equal.
B. The payments are made at equal interval of time.
C. The first payment is made at the beginning of the first period.
D. Compound interest is paid on all amounts in the annuity.
✅ The correct answer is option C.