1. The total depreciation for the year ended December 31, 2020 isa. P237,000 c. P233,250b. P232,500 d. P236,2502. The carrying amount of production machine as of December 31, 2020 isa. P1,024,500 c. P1,069,500b. P1,029,000 d. P 990,750 In the audit of the books of Yellow Corporation for the year 2020, the following items and information appeared in theProduction Machine account of the client:Date01/01ParticularsBalance-Machine 1, 2, 3, and 4 atP180,000 eachDebitCreditP 720,00002/28Machine 5396,000Machine 1P 6,00009/0112/01Machine 6192,000432,000Machine 7The Accumulated Depreciation account contained no entries for the year 2020. The balance on January 1, 2020 per youraudit, was as follows:Machine 1P168,750Machine 278,750Machine 367,500Machine 445,000Based on your further inquiry and verification, you noted the following:1. Machine 5 was purchased for cash; it replaced Machine 1, which was sold on this date for P6,000.2. Machine 2 was destroyed by the thickness of engine oil used leading to explosion on December 1, 2020. Machine 7was to replace Machine 2.3. Machine 3 was traded in for Machine 6 at an allowance of P24,000; the difference was paid in cash and charged toProduction Machine account.4. Depreciation rate is recognized at 25% per annum.

Name: 1. The total depreciation for the year ended December 31, 2020 isa. P2
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Description: 1. The total depreciation for the year ended December 31, 2020 isa. P237,000 c. P233,250b. P232,500 d. P236,2502. The carrying amount of production machine as of December 31, 2020 isa. P1,024,500 c. P1,069,500b. P1,029,000 d. P 990,750 In the audit o

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The total depreciation for the year ended December 31, 2020 is

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle.

Section: Chapter Questions

Problem 37RQSC

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