MAKINA Company acquired a machine for P6,400,000 on August 31, 2002. The machine has a 5-year life, a P1,000,000 salvage value, and was depreciated using the straight line method. On May 31, 2005, a test for recoverability reveals that the expected net future undiscounted cash inflows related to the continued use and eventual disposal of the machine total P3,000,000. The machine's fair value on May 31, 2005 is P2,700,000 with no residual value. Assuming a loss on impairment is recognized on May 31, 2005, what is MAKINA's depreciation for June 2005? 100,000 111,110 127,040 45,000

MAKINA Company acquired a machine for P6,400,000 on August 31, 2002. The machine has a 5-year life, a P1,000,000 salvage value, and was depreciated using the straight line method. On May 31, 2005, a test for recoverability reveals that the expected net future undiscounted cash inflows related to the continued use and eventual disposal of the machine total P3,000,000. The machine's fair value on May 31, 2005 is P2,700,000 with no residual value. Assuming a loss on impairment is recognized on May 31, 2005, what is MAKINA's depreciation for June 2005? 100,000 111,110 127,040 45,000

Name: MAKINA Company acquired a machine for P6,400,000 on August 31, 2002.
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Description: MAKINA Company acquired a machine for P6,400,000 on August 31, 2002. The machine has a 5-year life, aP1,000,000 salvage value, and was depreciated using the straight line method. On May 31, 2005, a test forrecoverability reveals that the expected ne

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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