Dawn Company purchased a machine on January 1, 2018 for P3,000,000. At the date of acquisition, the machine had a useful life of six years with no residual value. The machine was depreciated on a straight line basis. On January 1, 2021, the entity determined that the machine had a useful life of five years from the date of acquisition with residual value of P100,000.
Dawn Company purchased a machine on January 1, 2018 for P3,000,000. At the date of acquisition, the machine had a useful life of six years with no residual value. The machine was depreciated on a straight line basis. On January 1, 2021, the entity determined that the machine had a useful life of five years from the date of acquisition with residual value of P100,000.
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
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 2RE: Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual...
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SHOW YOUR SOLUTION IN GOOD ACCOUNTING FORM. THANK YOU
What amount should be recorded as
A. 700000
B. 500000
C. 750000
D. 600000
Transcribed Image Text:a
Dawn Company purchased a machine on January 1, 2018 for
P3,000,000. At the date of acquisition, the machine had
useful life of six years with no residual value. The machine
was depreciated on a straight line basis.
On January 1, 2021, the entity determined that the machine had
a useful life of five years from the date of acquisition with residual
value of P100,000.
crost
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