On January 1, 2020, Layman Company purchased personal computers for P6,000,000. The management estimated that the computers would last approximately 4 years with residual value of P600,000. The entity used the double declining balance method. During January 2021, the management realized that technological advancement had made the computers virtually obsolete and proposed changing the remaining useful life to 2 years. What amount of depreciation should be recognized for 2021? a. 3,000,000 b. 2,400,000 c. 1,500,000 d. 1,200,000
On January 1, 2020, Layman Company purchased personal computers for P6,000,000. The management estimated that the computers would last approximately 4 years with residual value of P600,000. The entity used the double declining balance method. During January 2021, the management realized that technological advancement had made the computers virtually obsolete and proposed changing the remaining useful life to 2 years. What amount of depreciation should be recognized for 2021? a. 3,000,000 b. 2,400,000 c. 1,500,000 d. 1,200,000
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
9th Edition
ISBN:9781305635937
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter12: Cash Flow Estimation And Risk Analysis
Section: Chapter Questions
Problem 10P: REPLACEMENT ANALYSIS The Dauten Toy Corporation currently uses an injection molding machine that was...
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