Doreen Company determined that the amortization rate on Its patents Is unacceptably low due to current advances in technology. The company decided at the beginning of 2020 to decrease the estimated total useful life on all existing patents from 10 years to 8 years. Patents were purchased on January 1, 2015 for P3,000,000. The estimated residual value is zero. Doreen Company decided on January 1, 2020, to change its depreciation method for manufacturing equipment from an accelerated method to the straight-line method. The straight-line method is to be used for new acquisitions as well as for previously acquired equipment As of January 1, 2020, the total historical cost of depreciable assets is P8,000,000 and the accumulated depreciation on those assets is P3,400,000. The expected remaining, useful life of Doreen's depreciable assets as of January 1, 2020 is 10 years and the expected residual value is P200.000. What is the total charge against 2020 income as a result of the accounting changes?
Doreen Company determined that the amortization rate on Its patents Is unacceptably low due to current advances in technology. The company decided at the beginning of 2020 to decrease the estimated total useful life on all existing patents from 10 years to 8 years. Patents were purchased on January 1, 2015 for P3,000,000. The estimated residual value is zero.
Doreen Company decided on January 1, 2020, to change its depreciation method for manufacturing equipment from an accelerated method to the straight-line method. The straight-line method is to be used for new acquisitions as well as for previously acquired equipment As of January 1, 2020, the total historical cost of
What is the total charge against 2020 income as a result of the accounting changes?
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