The ABC Company closes its books every December 31. On August 1, 2011, they bought a machine for P300,000. The machi ne is expected to have a useful life of 10 years with no scrap value. On August 1, 2015, P36,000 was paid for the major overh aul of the machine which extended the life of the machine for another two years. The machine was sold for P185,000 on June 30, 2016. The depreciation expense for the machine for 2015 was: a. P28,750 b. P30,000 C. P27,000 d. P32,000 e. None of the above

The ABC Company closes its books every December 31. On August 1, 2011, they bought a machine for P300,000. The machi ne is expected to have a useful life of 10 years with no scrap value. On August 1, 2015, P36,000 was paid for the major overh aul of the machine which extended the life of the machine for another two years. The machine was sold for P185,000 on June 30, 2016. The depreciation expense for the machine for 2015 was: a. P28,750 b. P30,000 C. P27,000 d. P32,000 e. None of the above

Name: The sale of the machine resulted in a gain/loss ofa.P33,250b.P35,500C
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Description: The sale of the machine resulted in a gain/loss ofa.P33,250b.P35,500C.P39,250d.P6,250eNone of the aboveAnswer (LETTER ONLY): The ABC Company closes its books every December 31. On August 1, 2011, they bought a machine for P300,000. The machine is ex

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter10: Project Cash Flows And Risk

Section: Chapter Questions

Problem 4PROB

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