On January 1, 2019, Weng company purchased two machines, Machine 1 for P1,500,000 and Machine 2 for 2,000,000. The machines were put into use immediately. Machine 1 has a useful life of 5 years and can be used only in one research project. Machine 2 will be used for 2 years on a research and development project and then used by the production division for an additional 8 years. The straight-line method of depreciation is used.
On January 1, 2019, Weng company purchased two machines, Machine 1 for P1,500,000 and Machine 2 for 2,000,000. The machines were put into use immediately. Machine 1 has a useful life of 5 years and can be used only in one research project. Machine 2 will be used for 2 years on a research and development project and then used by the production division for an additional 8 years. The straight-line method of depreciation is used.
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 5E: Comprehensive: Acquisition, Subsequent Expenditures, and Depreciation On January 2, 2019, Lapar...
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On January 1, 2019, Weng company purchased two machines, Machine 1 for P1,500,000 and Machine 2 for 2,000,000. The machines were put into use immediately. Machine 1 has a useful life of 5 years and can be used only in one research project. Machine 2 will be used for 2 years on a research and development project and then used by the production division for an additional 8 years. The straight-line method of
What total amount should be recognized as research and development expense for the current year?
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