Enter Sandman Co. purchased manufacturing equipment from Sad But True Co. on January 1, 20x8 at a total cost of P9,000,000. Enter Sandman uses the straight-line method of depreciation and estimates that the equipment has a useful life of 10 years. On July 1, 20x8 and July 1, 20x9 Enter Sandman performed major regular inspections on the equipment costing P380,000 and P425,000, respectively. The costs of inspection satisfied the recognition criteria for capitalization. How much is the carrying amount of the equipment on December 31, 20x9? O 7,600,000 O 7,920,000 O 7,875,000 O 7,529.412
Enter Sandman Co. purchased manufacturing equipment from Sad But True Co. on January 1, 20x8 at a total cost of P9,000,000. Enter Sandman uses the straight-line method of depreciation and estimates that the equipment has a useful life of 10 years. On July 1, 20x8 and July 1, 20x9 Enter Sandman performed major regular inspections on the equipment costing P380,000 and P425,000, respectively. The costs of inspection satisfied the recognition criteria for capitalization. How much is the carrying amount of the equipment on December 31, 20x9? O 7,600,000 O 7,920,000 O 7,875,000 O 7,529.412
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 7E: Loban Company purchased four cars for 9,000 each and expects that they will be sold in 3 years for...
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Transcribed Image Text:Enter Sandman Co. purchased manufacturing equipment from Sad But True Co. on January 1, 20x8 at a total cost of
P9,000,000. Enter Sandman uses the straight-line method of depreciation and estimates that the equipment has a
useful life of 10 years. On July 1, 20x8 and July 1, 20x9 Enter Sandman performed major regular inspections on the
equipment costing P380,000 and P425,000, respectively. The costs of inspection satisfied the recognition criteria for
capitalization. How much is the carrying amount of the equipment on December 31, 20x9?
O 7,600,000
O 7,920,000
O 7,875,000
O 7,529.412
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