ABC, Inc. purchased a crane on January 1, 2018, for P205,500. At the time of purchase, the crane was estimated to have a life of 6 years and a residual value of P13,500. In 2020, ABC Inc. determined that the crane had a total useful life of 7 years and a residual value of P9,000. If ABC Inc. uses the straight line method of depreciation, what will be the depreciation expense for the crane in 2020? * P32,000 P26,500 P18,928 P16,000
ABC, Inc. purchased a crane on January 1, 2018, for P205,500. At the time of purchase, the crane was estimated to have a life of 6 years and a residual value of P13,500. In 2020, ABC Inc. determined that the crane had a total useful life of 7 years and a residual value of P9,000. If ABC Inc. uses the straight line method of depreciation, what will be the depreciation expense for the crane in 2020? * P32,000 P26,500 P18,928 P16,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 9MCQ: Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a...
Related questions
Question
ABC, Inc. purchased a crane on January 1, 2018, for P205,500. At the time of purchase, the crane was estimated to have a life of 6 years and a residual value of P13,500. In 2020, ABC Inc. determined that the crane had a total useful life of 7 years and a residual value of P9,000. If ABC Inc. uses the
P32,000
P26,500
P18,928
P16,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
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
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT