What is the total carrying value of the manufacturing plant (machine, and equipment) as of December 31, 2021?
Grant Company has acquired a machine and equipment on January 2, 2018. The cost of the machine (including installation cost and decommissioning cost), P80,000,000 and the cost of the equipment is P20,000,000. The machine produces chemical products that are sold to overseas customers. As a condition to operate the machine, regular inspection for faults is performed every year at a cost of P1,000,000. The life of the machine is 10 years while the equipment 5 years. The company uses the straight-line method of
What is the total carrying value of the manufacturing plant (machine, and equipment) as of December 31, 2021?
Step by step
Solved in 2 steps