Freight and delivery charges P80,000 Non-refundable purchase taxes 70,000 Furniture cover* 50,000 Total P200,00
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Sniper Company purchased on January 2, 2019, a new set of furniture and fixtures by issuing 5,000 of its P100 par value shares (FV on this date is P110), in addition to P200,000 cash paid in connection to purchase. The P200,000 is broken as follows:
|
Freight and delivery charges |
P80,000 |
|
Non-refundable purchase taxes |
70,000 |
|
Furniture cover* |
50,000 |
|
Total |
P200,000 |
*the furniture cover was requested by the company president because he wanted his office furniture looks good. The cover does not enhance the asset.
The furniture and fixture are
What is the amount of depreciation expense – furniture and fixtures should Sniper Company recognized in its December 31, 2022 income statement?
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