ABC Company replaced some parts of its factory building as well as its annual maintenance and upkeep during 2020: The outside corrugated covering of the factory wall was removed and replaced. The job was done by an expert crew from Bayani Construction Company and will extend the life of the building by 4 years. The cost of the new wall was ₱600,000. The cost of the old wall is estimated to be ₱200,000. The building is 25% depreciated. General maintenance and tune up to its factory equipment in order to maintain their current projected capacity were incurred at a cost of ₱150,000. Dust filters in the interior of the factory were replaced at a cost of ₱300,000. The new filters are expected to reduce employee health hazards and thus reduce wage and fringe benefit costs. The original filters cost ₱100,000. What is the total amount to be expensed from the given expenditures of ABC Company? ₱1,150,000 ₱900,000 ₱450,000 ₱150,000
ABC Company replaced some parts of its factory building as well as its annual maintenance and upkeep during 2020: The outside corrugated covering of the factory wall was removed and replaced. The job was done by an expert crew from Bayani Construction Company and will extend the life of the building by 4 years. The cost of the new wall was ₱600,000. The cost of the old wall is estimated to be ₱200,000. The building is 25% depreciated. General maintenance and tune up to its factory equipment in order to maintain their current projected capacity were incurred at a cost of ₱150,000. Dust filters in the interior of the factory were replaced at a cost of ₱300,000. The new filters are expected to reduce employee health hazards and thus reduce wage and fringe benefit costs. The original filters cost ₱100,000. What is the total amount to be expensed from the given expenditures of ABC Company? ₱1,150,000 ₱900,000 ₱450,000 ₱150,000
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 13P
Related questions
Question
ABC Company replaced some parts of its factory building as well as its annual maintenance and upkeep during 2020:
- The outside corrugated covering of the factory wall was removed and replaced. The job was done by an expert crew from Bayani Construction Company and will extend the life of the building by 4 years. The cost of the new wall was ₱600,000. The cost of the old wall is estimated to be ₱200,000. The building is 25%
depreciated. - General maintenance and tune up to its factory equipment in order to maintain their current projected capacity were incurred at a cost of ₱150,000.
- Dust filters in the interior of the factory were replaced at a cost of ₱300,000. The new filters are expected to reduce employee health hazards and thus reduce wage and
fringe benefit costs. The original filters cost ₱100,000.
What is the total amount to be expensed from the given expenditures of ABC Company?
- ₱1,150,000
- ₱900,000
- ₱450,000
- ₱150,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT