On January 1, 2018, CRIMSON Company purchased machineries for P10,560,000 and depreciated it by the straight-line method using an estimated useful life of eight years with no salvage value. On January 1, 2021, CRIMSON determined that the machineries had a useful life of six years from the date of acquisition and will have a salvage value of P960,000. An accounting change was made in 2021 to reflect these additional data. How much should be the balance of the accumulated depreciation for these machineries on December 31, 2021? A. ₱ 6,160,000 B. ₱ 6,400,000 C. ₱ 7,040,000 D. ₱ 5,840,000

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.