On January 1, 20x1, Wonder Co.'s equipment with a historical ost of P9,000,000 and accumulated depreciation P4,200,000 is determined to be impaired. The appropriate carrying amount on this date is estimated to be only P3,000,000 and that the remaining useful life should only be 3 years instead of 8 years. How much is the accumulated depreciation on December 31, 20x1? a. 7,000,000 b. 6,000,000 c. 5,200,000 d. 1,000,000
On January 1, 20x1, Wonder Co.'s equipment with a historical ost of P9,000,000 and accumulated depreciation P4,200,000 is determined to be impaired. The appropriate carrying amount on this date is estimated to be only P3,000,000 and that the remaining useful life should only be 3 years instead of 8 years. How much is the accumulated depreciation on December 31, 20x1? a. 7,000,000 b. 6,000,000 c. 5,200,000 d. 1,000,000
Chapter8: Depreciation And Sale Of Business Property
Section: Chapter Questions
Problem 6MCQ: Which of the following is not true about the MACRS depreciation system: A salvage value must be...
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Transcribed Image Text:On January 1, 20x1, Wonder Co.'s equipment with a historical
mst of P9,000,000 and accumulated depreciation P4,200,000 is
determined to be impaired. The appropriate carrying amount
on this date is estimated to be only P3,000,000 and that the
remaining useful life should only be 3 years instead of 8 years.
How much is the accumulated depreciation on December 31,
20x1?
a. 7,000,000
b. 6,000,000
dapted)
c. 5,200,000
d. 1,000,000
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