(AICPA) 5. Marjorie, Inc. acquired a machine for P400,000 on August 31, 20x0. The machine has a five-year life, a P50,000 residual value, and was depreciated using the straight-line method. On May 31, 20x3, a test for recoverability reveals that the present value of expected net future cash inflows related to the continued use and eventual disposal of the machine total P150,000. The machine's fair value less costs of disposal on May 31, 20x3, is P135,000, with no residual value. Assuming a loss on impairment is recognized on May 31, 20x3, what is Marjorie's depreciation expense for June 20x3? a. 5,556 AICPA) b. 5,000 C. 4,500 d. 4,877
(AICPA) 5. Marjorie, Inc. acquired a machine for P400,000 on August 31, 20x0. The machine has a five-year life, a P50,000 residual value, and was depreciated using the straight-line method. On May 31, 20x3, a test for recoverability reveals that the present value of expected net future cash inflows related to the continued use and eventual disposal of the machine total P150,000. The machine's fair value less costs of disposal on May 31, 20x3, is P135,000, with no residual value. Assuming a loss on impairment is recognized on May 31, 20x3, what is Marjorie's depreciation expense for June 20x3? a. 5,556 AICPA) b. 5,000 C. 4,500 d. 4,877
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 3CE
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