On January 1, 2020, ABC corporation received P8,000,000 from the City of Caloocan to construct an overpass in the intersection of Camarin. The cost of the overpass is P25,000,000, with a useful life of 20 years. How much is the carrying value of the overpass as of December 31, 2021 assuming ABC used the deduction to asset approach? On January 1, 2020, ABC corporation received P8,000,000 from the Cityof Caloocan to construct an overpass in the intersection of Camarin. Thecost of the overpass is P25,000,000, with a useful life of 20 years.How much is the carrying value of the overpass as of December 31, 2021assuming ABC used the deduction to asset approach?

Given Cost of overpass = 25000000 Life = 20years Depreciation per year = 25000000/20 = 12500000

Answered: How much is the carrying value of the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2020, ABC corporation received P8,000,000 from the City of Caloocan to construct an overpass in the intersection of Camarin. The cost of the overpass is P25,000,000, with a useful life of 20 years. How much is the carrying value of the overpass as of December 31, 2021 assuming ABC used the deduction to asset approach?

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