JJ Corp. purchased a new machine with an estimated useful life of 5 years with no salvage value of P 45,000. The machine is expected to produce cash flow from operations, net of income taxes, as follows: 1st year P 9,000 4th year P 9,000 2nd year 12,000 5th year 8,000 3rd year 15,000 JJ will use the sum-of-the-years’ digit method of depreciate the new machine in its accounting records as follows: 1st year P15,000 4th year P 6,000 2nd year 12,000 5th year 3,000 3rd year 9,000 What is the payback period?
JJ Corp. purchased a new machine with an estimated useful life of 5 years with no salvage value of P 45,000. The machine is expected to produce cash flow from operations, net of income taxes, as follows: 1st year P 9,000 4th year P 9,000 2nd year 12,000 5th year 8,000 3rd year 15,000 JJ will use the sum-of-the-years’ digit method of depreciate the new machine in its accounting records as follows: 1st year P15,000 4th year P 6,000 2nd year 12,000 5th year 3,000 3rd year 9,000 What is the payback period?
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
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...
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JJ Corp. purchased a new machine with an estimated useful life of 5 years with no salvage value of P 45,000. The machine is expected to produce cash flow from operations, net of income taxes, as follows:
1st year |
P 9,000 |
4th year |
P 9,000 |
2nd year |
12,000 |
5th year |
8,000 |
3rd year |
15,000 |
|
|
JJ will use the sum-of-the-years’ digit method of
1st year |
P15,000 |
4th year |
P 6,000 |
2nd year |
12,000 |
5th year |
3,000 |
3rd year |
9,000 |
|
|
What is the payback period?
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