Problem 8-4 (IFRS) On January 1, 2017, Roma Company purchased equipment for P4,000,000. The equipment had a useful life of 10 years and a residual value of P400,000. On January 1, 2021, the entity determined that the useful life of the equipment was 12 years from the date of acquisition and the residual value was P480,000. 1. What is the carrying amount of the equipment on January 1, 2021? a. 2,560,000 b. 2,920,000 c. 2,400,000 d. 2,800,000 2. What amount should be recorded as depreciation of the equipment for 2021? a. 175,000 b. 260,000 c. 360,000 d. 300,000

Problem 8-4 (IFRS) On January 1, 2017, Roma Company purchased equipment for P4,000,000. The equipment had a useful life of 10 years and a residual value of P400,000. On January 1, 2021, the entity determined that the useful life of the equipment was 12 years from the date of acquisition and the residual value was P480,000. 1. What is the carrying amount of the equipment on January 1, 2021? a. 2,560,000 b. 2,920,000 c. 2,400,000 d. 2,800,000 2. What amount should be recorded as depreciation of the equipment for 2021? a. 175,000 b. 260,000 c. 360,000 d. 300,000

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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