provide solution in good accounting form Leody Company purchased a machine on December 1, 2020 at an invoice price of P4,500,000 with terms2/10, n/30. On December 10, 2020, Leody paid the required amount for the machine. On December 1,2020, Leody paid P80,000 for delivery of the machine and on December 31, 2020, it paid P310,000 forinstallation and testing of the machine. The machine was ready for use on January 1, 2021. It wasestimated that the machine would have a useful life of 5 years and a residual value of P800,000.Engineering estimate indicated that the useful life in productive units was 200,000. Units actuallyproduced during the first two years were 30,000 in 2021 and 48,000 in 2022. Leody Company decidedto use the output method of depreciation.What is the accumulated depreciation of the machine on December 31, 2022?

The depreciation of an assets up to a certain point inside its life is known as accumulated…

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provide solution in good accountin

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 10E: Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual...

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Question

provide solution in good accounting form

Leody Company purchased a machine on December 1, 2020 at an invoice price of P4,500,000 with terms
2/10, n/30. On December 10, 2020, Leody paid the required amount for the machine. On December 1,
2020, Leody paid P80,000 for delivery of the machine and on December 31, 2020, it paid P310,000 for
installation and testing of the machine. The machine was ready for use on January 1, 2021. It was
estimated that the machine would have a useful life of 5 years and a residual value of P800,000.
Engineering estimate indicated that the useful life in productive units was 200,000. Units actually
produced during the first two years were 30,000 in 2021 and 48,000 in 2022. Leody Company decided
to use the output method of depreciation.
What is the accumulated depreciation of the machine on December 31, 2022?

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