SHOW SOLUTIONS IN GOOD ACCOUNTING FORM Ping Company provided the following information with respect to its building:The building was acquired January 1, 2016 at a cost of P7,800,000 with an estimated useful lifeof 40 years and residual value of P200,000. Yearly depreciation was computed on the straightline method.The building was renovated on January 1, 2018 at a cost of P760,000. This was considered asimprovement. Residual value did not change.• On January 1, 2021, the management decided to change the total life of the building to 30years.What is the depreciation of the building for 2021?

Depreciation is the reduction in the value of asset due to its normal use and tear and wear. It is…

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What is the depreciation of the building for 2021?

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

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...

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Question

SHOW SOLUTIONS IN GOOD ACCOUNTING FORM

Ping Company provided the following information with respect to its building:
The building was acquired January 1, 2016 at a cost of P7,800,000 with an estimated useful life
of 40 years and residual value of P200,000. Yearly depreciation was computed on the straight
line method.
The building was renovated on January 1, 2018 at a cost of P760,000. This was considered as
improvement. Residual value did not change.
• On January 1, 2021, the management decided to change the total life of the building to 30
years.
What is the depreciation of the building for 2021?

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