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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 nor 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 carrying amount of the machine as of December 31, 2020? A. 4,200,000 B. 3,600,000 C. 3,000,000 D. 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 nor 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 carrying amount of the machine as of December 31, 2020? A. 4,200,000 B. 3,600,000 C. 3,000,000 D. 4,600,000

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 9MCQ: Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a...
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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 nor 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 carrying amount of
the machine as of December 31, 2020?

A. 4,200,000
B. 3,600,000
C. 3,000,000
D. 4,600,000

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