4. On January 12024, Foodie Company purchased factory equipment for P3,000,000. The estimated useful life of the equipment is 5 years and will be depreciated using the 150% declining balance method. What is the carrying amount of the equipment at the end of 2025? (2 Points) Enter your answer

## Step 1: Calculate the Depreciation Rate<br />### The depreciation rate for the \(150\%\) declining balance method is calculated as \(\frac{150\%}{\text{useful life}}\). For a useful life of 5 years, this becomes \(\frac{150\%}{5} = 30\%\).<br /><br />## Step 2: Calculate Depreciation for 2024<br />### The depreciation expense for the first year (2024) is calculated by multiplying the initial cost by the depreciation rate. Thus, \(3,000,000 \times 30\% = 900,000\).<br /><br />## Step 3: Calculate Carrying Amount at End of 2024<br />### Subtract the depreciation expense from the initial cost to find the carrying amount at the end of 2024: \(3,000,000 - 900,000 = 2,100,000\).<br /><br />## Step 4: Calculate Depreciation for 2025<br />### The depreciation expense for the second year (2025) is calculated by multiplying the carrying amount at the end of 2024 by the depreciation rate. Thus, \(2,100,000 \times 30\% = 630,000\).<br /><br />## Step 5: Calculate Carrying Amount at End of 2025<br />### Subtract the depreciation expense for 2025 from the carrying amount at the end of 2024 to find the carrying amount at the end of 2025: \(2,100,000 - 630,000 = 1,470,000\).