On January 1, 2019, Chiz Company acquired equipment to be used in its manufacturing operations. The equipment has an estimated useful life of 10 years and an estimated residual value of P50,000. The depreciation applicable to this equipment was P240,000 for 2021 computed under the sum of years' digits method. What was the acquisition cost of the equipment?
On January 1, 2019, Chiz Company acquired equipment to be used in its manufacturing operations. The equipment has an estimated useful life of 10 years and an estimated residual value of P50,000. The depreciation applicable to this equipment was P240,000 for 2021 computed under the sum of years' digits method. What was the acquisition cost of the equipment?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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8. Chiz Company
![On January 1, 2019, Chiz Company acquired equipment to be used in its manufacturing operations. The
equipment has an estimated useful life of 10 years and an estimated residual value of P50,000. The
depreciation applicable to this equipment was P240,000 for 2021 computed under the sum of years' digits
method. What was the acquisition cost of the equipment?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2f79b305-8943-423c-a834-f2959a978fc3%2Fe78cea37-c88a-4916-bbed-b0879b30e890%2Fe2i3cce_processed.png&w=3840&q=75)
Transcribed Image Text:On January 1, 2019, Chiz Company acquired equipment to be used in its manufacturing operations. The
equipment has an estimated useful life of 10 years and an estimated residual value of P50,000. The
depreciation applicable to this equipment was P240,000 for 2021 computed under the sum of years' digits
method. What was the acquisition cost of the equipment?
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