On January 1, 20x1, ABC Co. purchased a new machine for P600,000. The machine had an estimated useful life of eight years and a salvage value of P150,000. ABC elected to depreciation the machine using the double declining balance method. On January 1, 20x4, the company decided to change to straight line depreciation. The salvage value did not change. Required: 1. What is the carrying amount of the machine on December 31, 20x3? 2. What is the depreciation expense for 20x4?

On January 1, 20x1, ABC Co. purchased a new machine for P600,000. The machine had an estimated useful life of eight years and a salvage value of P150,000. ABC elected to depreciation the machine using the double declining balance method. On January 1, 20x4, the company decided to change to straight line depreciation. The salvage value did not change. Required: 1. What is the carrying amount of the machine on December 31, 20x3? 2. What is the depreciation expense for 20x4?

Name: On January 1, 20x1, ABC Co. purchased a new machine for P600,000. The
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Description: On January 1, 20x1, ABC Co. purchased a new machine for P600,000. The machine had an estimated usefullife of eight years and a salvage value of P150,000. ABC elected to depreciation the machine using the doubledeclining balance method.On January 1,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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