On January 1, 2021, Save Company discovered that it had incorrectly expensed a P2,100,000 machine purchased on January 1, 2018. The entity estimated the machine's original useful life to be 10 years and the residual value at P100,000. The entity used the straight line method of depreciation and is subject to a 30% income tax rate. In the December 31, 2021 financial statements, what amount should be reported as a prior period error?
On January 1, 2021, Save Company discovered that it had incorrectly expensed a P2,100,000 machine purchased on January 1, 2018. The entity estimated the machine's original useful life to be 10 years and the residual value at P100,000. The entity used the straight line method of depreciation and is subject to a 30% income tax rate. In the December 31, 2021 financial statements, what amount should be reported as a prior period error?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2021, Save Company discovered that it had incorrectly expensed a P2,100,000 machine purchased on January 1, 2018. The entity estimated the machine's original useful life to be 10 years and the residual value at P100,000. The entity used the
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