38. Pink Company purchased a machine on January 1, 2019 for P6,000,000. At the date of acquisition, the machine had . life of six years with no residual value. The machine was depreciated on a straight-line basis. On January 1, 2022, the ent determined that the machine has a useful life of eight years from the date of acquisition with no residual value. What is the depreciation of the machine for 2022?
38. Pink Company purchased a machine on January 1, 2019 for P6,000,000. At the date of acquisition, the machine had . life of six years with no residual value. The machine was depreciated on a straight-line basis. On January 1, 2022, the ent determined that the machine has a useful life of eight years from the date of acquisition with no residual value. What is the depreciation of the machine for 2022?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 8MC: On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was...
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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