fered partial damage. The following were made available: Cost P570,000 Accumulated depreciation 300,000 Restoration cost 300,000 Estimated useful life 5 years
fered partial damage. The following were made available: Cost P570,000 Accumulated depreciation 300,000 Restoration cost 300,000 Estimated useful life 5 years
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A resident citizen acquired a property for use in his business. After a devastating
typhoon, the machinery suffered partial damage. The following were made available:
Cost P570,000
Restoration cost 300,000
Estimated useful life 5 years
The taxpayer received insurance proceeds of P50,000 to cover the loss.
Determine the amount of allowable deductions
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