On December 31, 2021, Alexis Company has an item of machinery with a cost of P4,500,000 and an accumulated depreciation of P1,800,000. On this date, the machinery is found to be impaired due to obsolescence and a major physical damage. At the date of its acquisition, this machinery has an estimated useful life of ten years and was depreciated using the straight line basis. The entity made an assessment and test for recoverability of the asset and determined that the machinery’s fair value is P2,500,000 and estimated disposal cost is P250,000. The entity expects net future undiscounted cash flows related to the continued use and eventual disposal of the machinery of P2,600,000. The net future discounted cash flows related to the continued use and eventual disposal of
On December 31, 2021, Alexis Company has an item of machinery with a cost of P4,500,000 and an
The entity made an assessment and test for recoverability of the asset and determined that the machinery’s fair value is P2,500,000 and estimated disposal cost is P250,000. The entity expects net future undiscounted
How much is the depreciation expense of this machinery for the year ended December 31, 2022?
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