A new machine was acquired on May 31, 2022 with the following considerations: Carrying value of old machine given up with current fair value of P500,000 P450,000 Notes payable in two equal annual installment every May 31, starting 2023 400,000 (10%,interest bearing; 2 years; effective rate on this date 9%) Estimated dismantling after eight (8) year life of the machine (at 9% effective 60,000 rate) The machine is depreciated using double declining balance method and estimated to have P80,000 of residual value. How much is the depreciation of the machine in 2022?

A new machine was acquired on May 31, 2022 with the following considerations: Carrying value of old machine given up with current fair value of P500,000 P450,000 Notes payable in two equal annual installment every May 31, starting 2023 400,000 (10%,interest bearing; 2 years; effective rate on this date 9%) Estimated dismantling after eight (8) year life of the machine (at 9% effective 60,000 rate) The machine is depreciated using double declining balance method and estimated to have P80,000 of residual value. How much is the depreciation of the machine in 2022?

Name: A new machine was acquired on May 31, 2022 with the following conside
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Description: A new machine was acquired on May 31, 2022 with the following considerations:Carrying value of old machine given up with current fair value of P500,000P450,000Notes payable in two equal annual installment every May 31, starting 2023400,000(10%,inter

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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