Ventura Corporation purchased machinery on January 1, 2019 for P630,000. The company used the sum-of-the-years'- digits method and no salvage value to depreciate the asset for the first two years of its estimated six-year life. In 2020, Ventura changed to the straight-line depreciation method for this asset. The following facts pertain: Under the Straight line method, P105,000 and P105,000 for years 2019 and 2020 respectively; Under the Sum-of-the-year's digits method, P180,000 and P150,000 for 2019 and 2020 respectively. Ventura is subject to a 40% tax rate.The amount that Ventura should report for depreciation expense on its 2011 income statement is (A P120,000. (B none of the above. P75,000. D) P105,000.

Ventura Corporation purchased machinery on January 1, 2019 for P630,000. The company used the sum-of-the-years'- digits method and no salvage value to depreciate the asset for the first two years of its estimated six-year life. In 2020, Ventura changed to the straight-line depreciation method for this asset. The following facts pertain: Under the Straight line method, P105,000 and P105,000 for years 2019 and 2020 respectively; Under the Sum-of-the-year's digits method, P180,000 and P150,000 for 2019 and 2020 respectively. Ventura is subject to a 40% tax rate.The amount that Ventura should report for depreciation expense on its 2011 income statement is (A P120,000. (B none of the above. P75,000. D) P105,000.

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

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 11P

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