Subic Company purchased factory equipment on October 1, 2017 costing P960, 000. In view of pending technological developments it is estimated that the machine will have a resale value upon disposal in four and one half years of P70,000 and the disposal cost will be P10,000. Estimated useful life: Service hours. 8,000 Actual operations (machine was retired at end of four and one half years) hours. service hours 2017. 1,000 2000 2018. Required: Compute depreciation expense for 2017 and 2018 using: a. Service hours depreciation b. SYD c. Straight Line
Subic Company purchased factory equipment on October 1, 2017 costing P960, 000. In view of pending technological developments it is estimated that the machine will have a resale value upon disposal in four and one half years of P70,000 and the disposal cost will be P10,000. Estimated useful life: Service hours. 8,000 Actual operations (machine was retired at end of four and one half years) hours. service hours 2017. 1,000 2000 2018. Required: Compute depreciation expense for 2017 and 2018 using: a. Service hours depreciation b. SYD c. Straight Line
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 8MC: On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was...
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