On January 1, 2016, LLC Corporation purchased a building and equipment that have the following useful lives, residual values, and costs.Building, 40-year estimated useful life, P50,000 residual value, P1,200,000 costEquipment, 12-year estimated useful life, P10,000 residual value, P130,000 costThe building has been depreciated under the double-declining-balance method through 2019. In 2020, the company decided to switch to the straight-line method of depreciation. LLC also decided to change the total useful life of the equipment to 9 years, with a residual value of P5,000 at the end of that time. The equipment is depreciated using the straight-line method. Required a. Prepare the journal entry(ies) necessary to record the depreciation expense on the building in 2020. b. Compute depreciation expense on the equipment for 2020.
On January 1, 2016, LLC Corporation purchased a building and equipment that have the following useful lives, residual values, and costs.Building, 40-year estimated useful life, P50,000 residual value, P1,200,000 costEquipment, 12-year estimated useful life, P10,000 residual value, P130,000 costThe building has been
Required
a. Prepare the
b. Compute depreciation expense on the equipment for 2020.
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