Depreciation expense

Q:  To calculate depreciation expense per quarter for equipment:  What is the depreciation ($ or P) amount for equipment in Sereno?

A:  Equipment is depreciated on a straight-line basis over 7 years.  So depreciation charges each quarter are calculated as 1/28th (3.5714 percent) of the original book value of all equipment in place during the quarter.  It should be noted that this is not the same as taking 1/28th of the value of net equipment on the balance sheet. Net equipment is the depreciated value of equipment in place rather than the original book value.  This applies both to peso values in Sereno and dollar values in Merica.