Janet Company purchased a machine on April 1, 2017 for P750,000. At that time, was determined that the machine had a estimated useful life of 10 years and an estimated residual value of P30,000. The company used the double-declining balance method of depreciation and it is the company's policy to provide full year depreciation in the year of acquisition and no depreciation in the year of disposal. During 2021, after appropriate justification, the company changed its depreciation method to straight-line, at which time the machine's remaining useful life was estimated to be four years (including the current year) without residual value. How much is the depreciation expense for the machine for the year 2021?
Janet Company purchased a machine on April 1, 2017 for P750,000. At that time, was determined that the machine had a estimated useful life of 10 years and an estimated residual value of P30,000. The company used the double-declining balance method of
During 2021, after appropriate justification, the company changed its depreciation method to straight-line, at which time the machine's remaining useful life was estimated to be four years (including the current year) without residual value.
How much is the depreciation expense for the machine for the year 2021?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
