Benevolent Company acquired on January 1, 2003 a delivery equipment for P7,200,000 with a useful life of 10 years. The equipment has no residual value at that time. The double declining balance method was used to depreciate the equipment: On December 31, 2004, the accumulated depreciation of the equipment was P2,592,000. On January 1, 2005, Benevolent changed its depreciation method to straight-line. Benevolent can justify the change. For the year ended December 31, 2005, Benevolent's depreciation expense on the equipment should be ______?
Benevolent Company acquired on January 1, 2003 a delivery equipment for P7,200,000 with a useful life of 10 years. The equipment has no residual value at that time. The double declining balance method was used to depreciate the equipment: On December 31, 2004, the accumulated depreciation of the equipment was P2,592,000. On January 1, 2005, Benevolent changed its depreciation method to straight-line. Benevolent can justify the change. For the year ended December 31, 2005, Benevolent's depreciation expense on the equipment should be ______?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Benevolent Company acquired on January 1, 2003 a delivery equipment for P7,200,000 with a useful life of 10 years. The equipment has no residual value at that time. The double declining balance method was used to
is 460,800 correct?
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