0 for a major overhaul to put the equipment in good running condition. The equipment is available for the intended use on December 31, 2020. The equipment has an estimated useful life of 5 years. Depreciation is on a straight line basis. On April 1, 2021, Manila Company leased the equipment to Makati Company for 2 years up to March 31, 2023.
Manila Company is engaged in leasing heavy equipment. On December 1, 2020, the entity bought a second hand heavy equipment for P375,000.
In December 2020, the entity incurred P75,000 for a major overhaul to put the equipment in good running condition.
The equipment is available for the intended use on December 31, 2020. The equipment has an estimated useful life of 5 years.
On April 1, 2021, Manila Company leased the equipment to Makati Company for 2 years up to March 31, 2023.
The lease fee is P15,000 per month. Mkati Company paid P180,000 on April 1, 2021, the lease fee for one year.
During 2021, Manila Company spent P7,000 for minor repairs and P3,000 for transporation of the equipment to Makati Company.
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