ABC Corporation acquired a machine on January 1, 2013. Details of the machine at December 31, 2019 are given below: During 2020, the following events took place: Engine: Had run for 30,000 hours till date developed serious snags. It was replaced by a better engine with a cost of ₱238,000,000 and estimated life of 50,000 hours. The new engine was used for 5,000 hours during the year. Polishing and painting was done to the other casings at a cost of ₱1,300,000. c. Other components were upgraded at a cost of ₱102,000,000. The remaining life of the other components is 5 years. Compute the total depreciation for the year 2020, assume that all work mentioned above was completed at the beginning of 2020.
ABC Corporation acquired a machine on January 1, 2013. Details of the machine at December 31, 2019 are given below: During 2020, the following events took place: Engine: Had run for 30,000 hours till date developed serious snags. It was replaced by a better engine with a cost of ₱238,000,000 and estimated life of 50,000 hours. The new engine was used for 5,000 hours during the year. Polishing and painting was done to the other casings at a cost of ₱1,300,000. c. Other components were upgraded at a cost of ₱102,000,000. The remaining life of the other components is 5 years. Compute the total depreciation for the year 2020, assume that all work mentioned above was completed at the beginning of 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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ABC Corporation acquired a machine on January 1, 2013. Details of the machine at December 31, 2019 are given below:
During 2020, the following events took place:
- Engine: Had run for 30,000 hours till date developed serious snags. It was replaced by a better engine with a cost of ₱238,000,000 and estimated life of 50,000 hours. The new engine was used for 5,000 hours during the year.
- Polishing and painting was done to the other casings at a cost of ₱1,300,000. c. Other components were upgraded at a cost of ₱102,000,000.
The remaining life of the other components is 5 years. Compute the total
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