CEE Corporation purchased a machine on January 1, 2016 by instalment, initially paying ₱1,000,000, and a payment of ₱500,000 every December 31 is required for four (4) years. The selling price of the machine, if paid on cash basis, is ₱2,500,000. The residual value of the machine after its 4-year useful life is ₱200,000. The company used the double declining balance method in depreciating the machine. How much is the cost of the machine upon acquisition?
CEE Corporation purchased a machine on January 1, 2016 by instalment, initially paying ₱1,000,000, and a payment of ₱500,000 every December 31 is required for four (4) years. The selling price of the machine, if paid on cash basis, is ₱2,500,000. The residual value of the machine after its 4-year useful life is ₱200,000. The company used the double declining balance method in depreciating the machine. How much is the cost of the machine upon acquisition?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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CEE Corporation purchased a machine on January 1, 2016 by instalment, initially paying ₱1,000,000, and a payment of ₱500,000 every December 31 is required for four (4) years. The selling price of the machine, if paid on cash basis, is ₱2,500,000. The residual value of the machine after its 4-year useful life is ₱200,000. The company used the double declining balance method in
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