On January 1, 2021 the Emming Corporation purchased some machinery. The machinery has an estimated life of 10 years and an estimated residual value of P5, 000. The depreciation on this machinery was P20,000 in 2023. Required Compute the acquisition cost of the equipment under the following depreciation methods: 1. Straight-line 2. Sum-of-the-years’-digits 3. Double-declining-balance

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
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 2E: Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The...
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On January 1, 2021 the Emming Corporation purchased some machinery. The machinery
has an estimated life of 10 years and an estimated residual value of P5, 000. The depreciation
on this machinery was P20,000 in 2023.
Required
Compute the acquisition cost of the equipment under the following depreciation methods:
1. Straight-line
2. Sum-of-the-years’-digits
3. Double-declining-balance

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