Mortal Company acquired a machine for P3,200,000 on August31, 2017.The machine has a 5-year useful life, a P500,000 residualvalue, and was depreciated using the straight line method.On May 31, 2020, a test for recoverability revealed that theexpected net future undiscounted cåsh inflows related tothe continued use and eventual disposal of the machineamount to P1,500,000.The fair value less cost of disposal of the machine on May31, 2020 is P1,350,000 with no residual value.What is the depreciation of the machine for June 2020?

Name: Mortal Company acquired a machine for P3,200,000 on August31, 2017.Th
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Description: Mortal Company acquired a machine for P3,200,000 on August31, 2017.The machine has a 5-year useful life, a P500,000 residualvalue, and was depreciated using the straight line method.On May 31, 2020, a test for recoverability revealed that theexpecte

Impairment of fixed assets means when fair value of the fixed assets is less than the carrying value…

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Mortal Company acquired a machine for P3,200,000 on August 31, 2017. The machine has a 5-year useful life, a P500,000 residual value, and was depreciated using the straight line method. On May 31, 2020, a test for recoverability revealed that the expected net future undiscounted câsh inflows related to the continued use and eventual disposal of the machine amount to P1,500,000. The fair value less cost of disposal of the machine on May 31, 2020 is P1,350,000 with no residual value. What is the depreciation of the machine for June 2020?

Mortal Company acquired a machine for P3,200,000 on August 31, 2017. The machine has a 5-year useful life, a P500,000 residual value, and was depreciated using the straight line method. On May 31, 2020, a test for recoverability revealed that the expected net future undiscounted câsh inflows related to the continued use and eventual disposal of the machine amount to P1,500,000. The fair value less cost of disposal of the machine on May 31, 2020 is P1,350,000 with no residual value. What is the depreciation of the machine for June 2020?

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 10E: Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual...

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