An equipment was acquired on December 31, 2016 for P5,000,000 and is expected to have a 10-year useful life. The straight-line method was used. On January 1, 2020, the asset was deemed to have a sound value of P4,800,000. On January 1, 2023, the replacement cost of the asset was P3,500,000. How much should be taken to profit or loss for the period ended December 31, 2023?

An equipment was acquired on December 31, 2016 for P5,000,000 and is expected to have a 10-year useful life. The straight-line method was used. On January 1, 2020, the asset was deemed to have a sound value of P4,800,000. On January 1, 2023, the replacement cost of the asset was P3,500,000. How much should be taken to profit or loss for the period ended December 31, 2023?

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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