BTS Company purchased machinery for P250,000 on July 1, 2018. Freight and installation costs incurred by BTS Company amounted to P18,000. The asset is estimated to have a useful life of 5 years and an estimated salvage value of P20,000. It is the company’s policy to depreciate this machinery to the nearest month using double-declining balance method. On January 1, 2020, the company spent P79,360 for the upgrade of this machinery that improved its condition beyond its original assessed standard of performance that led to a significant improvement in the quality of its output. At this time, the machinery’s estimated residual value has changed to P40,000
BTS Company purchased machinery for P250,000 on July 1, 2018. Freight and installation costs incurred by BTS Company amounted to P18,000. The asset is estimated to have a useful life of 5 years and an estimated salvage value of P20,000. It is the company’s policy to
On January 1, 2020, the company spent P79,360 for the upgrade of this machinery that improved its condition beyond its original assessed standard of performance that led to a significant improvement in the quality of its output. At this time, the machinery’s estimated residual value has changed to P40,000 and the company decides to change to the straight-line method.
How much is the revised depreciation expense for this machinery for the year ended December 31, 2020?
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