As of Dec. 31, 2020, Leonard Co. had machinery recorded in its books in the total amount of P22,500,000.00 with an accumulated depreciation of P6,250,000.00. Leonard adopts the straight line depreciation method to account for the depreciation of its machinery. All of its machinery have a useful life of 10 years. On Apr. 1, 2021, a machine purchased for P575,000 on Apr. 1, 2015, was stolen. Lenard recovered P387,500 from its insurance company. How much is the depreciation expense to be recognized for 2021?
As of Dec. 31, 2020, Leonard Co. had machinery recorded in its books in the total amount of P22,500,000.00 with an accumulated depreciation of P6,250,000.00. Leonard adopts the straight line depreciation method to account for the depreciation of its machinery. All of its machinery have a useful life of 10 years. On Apr. 1, 2021, a machine purchased for P575,000 on Apr. 1, 2015, was stolen. Lenard recovered P387,500 from its insurance company. How much is the depreciation expense to be recognized for 2021?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...
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![As of Dec. 31, 2020, Leonard Co. had machinery recorded in its books in the total
amount of P22,500,000.00 with an accumulated depreciation of P6,250,000.00.
Leonard adopts the straight line depreciation method to account for the depreciation
of its machinery. All of its machinery have a useful life of 10 years. On Apr. 1, 2021, a
machine purchased for P575,000 on Apr. 1, 2015, was stolen. Lenard recovered
P387,500 from its insurance company. How much is the depreciation expense to be
recognized for 2021?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4ea0a062-25e1-4882-aef9-d0b551012b75%2F27c8839e-cc3d-4c76-b0d2-46b790f1dd63%2F1ezwhtw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:As of Dec. 31, 2020, Leonard Co. had machinery recorded in its books in the total
amount of P22,500,000.00 with an accumulated depreciation of P6,250,000.00.
Leonard adopts the straight line depreciation method to account for the depreciation
of its machinery. All of its machinery have a useful life of 10 years. On Apr. 1, 2021, a
machine purchased for P575,000 on Apr. 1, 2015, was stolen. Lenard recovered
P387,500 from its insurance company. How much is the depreciation expense to be
recognized for 2021?
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