fered partial damage. The following were made available: Cost                                      P570,000 Accumulated depreciation      300,000 Restoration cost                      300,000 Estimated useful life                 5 years

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
Accumulated depreciation      300,000
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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