The small tools account of ATROCIOUS CRUEL Co. has a balance of ₱600,000 as of January 1, 20x1. The movements in this account during the year were as follows: Feb.AprilSept.Nov.Cost of new tools acquired40,000-120,00088,000Cost of old tools retired24,00048,000-72,000Disposal proceeds of old tools2,0003,200-4,000How much is the depreciation expense in 20x1 under the retirement method?

Depreciation is the expense which decreases the value of the asset on which depreciation has been…

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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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The small tools account of ATROCIOUS CRUEL Co. has a balance of ₱600,000 as of January 1, 20x1. The movements in this account during the year were as follows:

	Feb.	April	Sept.	Nov.
Cost of new tools acquired	40,000	-	120,000	88,000
Cost of old tools retired	24,000	48,000	-	72,000
Disposal proceeds of old tools	2,000	3,200	-	4,000

How much is the depreciation expense in 20x1 under the retirement method?

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