On April 1, 2018, the new machinery was ordered at a quoted price of P56, 000. On July 1, 2018, it arrived at Dodik Corp’s plant with an actual invoice price of P58,000, which it paid immediately. During July 2018, a new concrete platform was constructed at a cost of P4,000 to properly install the machine. In August 2018, testing was performed at a cost of P7,000 to ensure the machine was operating properly. On August 31, 2018, the machine was entered into service. Minor repairs and maintenance costs on the new machine amounted to P3,000 in September 2018. No other costs were incurred prior to December 31, 2018. Similar machinery is depreciated on a straight line basis over 10 years and typically has no residual value. What should be the depreciation expense for the year ended 31 December 2018?
On April 1, 2018, the new machinery was ordered at a quoted price of P56, 000. On July 1, 2018, it arrived at Dodik
Corp’s plant with an actual invoice price of P58,000, which it paid immediately. During July 2018, a new concrete
platform was constructed at a cost of P4,000 to properly install the machine. In August 2018, testing was performed at a
cost of P7,000 to ensure the machine was operating properly. On August 31, 2018, the machine was entered into
service. Minor repairs and maintenance costs on the new machine amounted to P3,000 in September 2018. No other
costs were incurred prior to December 31, 2018. Similar machinery is
and typically has no residual value. What should be the depreciation expense for the year ended 31 December
2018?
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