Adger Corporation purchased a machine for P150,000 on January 1, 2004. Adger will depreciate the machine using the straight-line method using a five-year period with no residual value. As a result of an error in its purchasing records, Badger did not recognize any depreciation for the machine in its 2004 financial statements. Adger discovered the problem during the preparation of its 2005 financial statements. What amount should Adger record for depreciation expense on this machine for 2005?   Choices; P 0 P 30,000 P 37,500 P 60,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Adger Corporation purchased a machine for P150,000 on January 1, 2004. Adger will depreciate the machine using the straight-line method using a five-year period with no residual value. As a result of an error in its purchasing records, Badger did not recognize any depreciation for the machine in its 2004 financial statements. Adger discovered the problem during the preparation of its 2005 financial statements. What amount should Adger record for depreciation expense on this machine for 2005?
 
Choices;
P 0
P 30,000
P 37,500
P 60,000
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