On January 1, 2011, RIGHTEOUS MORAL Co. acquired a piece of equipment for ₱2,000,000. The equipment is depreciated using the straight line method over an estimated useful life of 10 years and residual value of ₱200,000. On January 1, 2016, RIGHTEOUS Co. determined that the equipment is impaired. Fair value less costs of disposal is ₱560,000. Projected future net cash flows from revenues produced by the equipment is ₱200,000 annually. The revised estimated useful life is 4 years and the new estimated residual value is ₱40,000. The appropriate discount rate is 10%. How much is the depreciation expense in 2016? With solutions please a. 156,732 b. 155,324 c. 155,132 d. 154,324
On January 1, 2011, RIGHTEOUS MORAL Co. acquired a piece of equipment for ₱2,000,000. The equipment is depreciated using the straight line method over an estimated useful life of 10 years and residual value of ₱200,000. On January 1, 2016, RIGHTEOUS Co. determined that the equipment is impaired. Fair value less costs of disposal is ₱560,000. Projected future net cash flows from revenues produced by the equipment is ₱200,000 annually. The revised estimated useful life is 4 years and the new estimated residual value is ₱40,000. The appropriate discount rate is 10%. How much is the depreciation expense in 2016? With solutions please a. 156,732 b. 155,324 c. 155,132 d. 154,324
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 6CE
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On January 1, 2011, RIGHTEOUS MORAL Co. acquired a piece of equipment for ₱2,000,000. The equipment is depreciated using the straight line method over an estimated useful life of 10 years and residual value of ₱200,000.
On January 1, 2016, RIGHTEOUS Co. determined that the equipment is impaired. Fair value less costs of disposal is ₱560,000. Projected future net cash flows from revenues produced by the equipment is ₱200,000 annually. The revised estimated useful life is 4 years and the new estimated residual value is ₱40,000. The appropriate discount rate is 10%. How much is the depreciation expense in 2016? With solutions please
a. 156,732
b. 155,324
c. 155,132
d. 154,324
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