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On January 1, 2018, an entity purchased a machine for P7,200,000 and depreciated it by the straight line method using an estimated useful life of eight years with no residual value. On January 1, 2020, the entity determined that the machine had a useful life of six years from the date of acquisition with a residual value of P600,000. What is the accumulated depreciation on December 31, 2020? a. 4,200,000 3,600,000 3,000,000 4,600,000

On January 1, 2018, an entity purchased a machine for P7,200,000 and depreciated it by the straight line method using an estimated useful life of eight years with no residual value. On January 1, 2020, the entity determined that the machine had a useful life of six years from the date of acquisition with a residual value of P600,000. What is the accumulated depreciation on December 31, 2020? a. 4,200,000 3,600,000 3,000,000 4,600,000

Intermediate Accounting: Reporting And Analysis
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 11E: On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated...
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  1. On January 1, 2018, an entity purchased a machine for P7,200,000 and depreciated it by the straight line method using an estimated useful life of eight years with no residual value. On January 1, 2020, the entity determined that the machine had a useful life of six years from the date of acquisition with a residual value of P600,000. What is the accumulated depreciation on December 31, 2020? a. 4,200,000
    1. 3,600,000
    2. 3,000,000
    3. 4,600,000

 

  1. On January 1, 2018, an entity purchased for P5,000,000 a machine with useful life of ten years and residual value of P200,000. The machine was depreciated by the double declining balance method. The entity changed to the straight-line method on January 1, 2020 and the residual value did not change. What is the carrying amount of the asset on December 31, 2020? a. 2,825,000
    1. 2,800,000
    2. 2,625,000
    3. 3,200,000
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