Canada Company purchased a machine at an invoice price of P4,500,000 with terms 2/10, n/30. The entity paid the required amount for the machine beyond the discount period. The entity paid P80,000 for delivery of the machine and P310,000 for installation and testing. The machine was ready for use on January 1, 2019. It was estimated that the machine would have a useful life of 5 years and a residual value of P800,000. Engineering estimated indicated that the useful life of productive units was 200,000. Units actually produced during the first two years were 30,000 in 2019 and 48,000 in 2020. The entity decided to use the output method of depreciation. What is the accumulated depreciation of the machine on December 31, 2020? A. 1,560,000 B. 1,600,000 C. 960,000 D. 600,000
Canada Company purchased a machine at an invoice price of P4,500,000 with terms 2/10, n/30. The entity paid the required amount for the machine beyond the discount period. The entity paid P80,000 for delivery of the machine and P310,000 for installation and testing. The machine was ready for use on January 1, 2019. It was estimated that the machine would have a useful life of 5 years and a residual value of P800,000. Engineering estimated indicated that the useful life of productive units was 200,000. Units actually produced during the first two years were 30,000 in 2019 and 48,000 in 2020. The entity decided to use the output method of depreciation. What is the accumulated depreciation of the machine on December 31, 2020? A. 1,560,000 B. 1,600,000 C. 960,000 D. 600,000
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 11E: On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated...
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Canada Company purchased a machine at an invoice price of P4,500,000 with terms 2/10, n/30. The entity paid the required amount for the machine beyond the discount period. The entity paid P80,000 for delivery of the machine and P310,000 for installation and testing. The machine was ready for use on January 1, 2019. It was estimated that the machine would have a useful life of 5 years and a residual value of P800,000. Engineering estimated indicated that the useful life of productive units was 200,000. Units actually produced during the first two years were 30,000 in 2019 and 48,000 in 2020. The entity decided to use the output method of depreciation . What is the accumulated depreciation of the machine on December 31, 2020?
A. 1,560,000
B. 1,600,000
C. 960,000
D. 600,000
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