On January 1, 20x1, PRISTINE UNCORRUPTED Co. acquired an equipment for ₱4,000,000. The equipment will be depreciated using the straight-line method over 20 years. The estimated residual value is ₱400,000. In 20x6, following a reassessment of the realization of the expected economic benefits from the equipment, PRISTINE Co. changed its depreciation method to sum-of-the-years digits (SYD). The remaining useful life of the asset is estimated to be 4 years and the residual value is changed to ₱200,000. How much is the depreciation expense in 20x6?
On January 1, 20x1, PRISTINE UNCORRUPTED Co. acquired an equipment for ₱4,000,000. The equipment will be depreciated using the straight-line method over 20 years. The estimated residual value is ₱400,000. In 20x6, following a reassessment of the realization of the expected economic benefits from the equipment, PRISTINE Co. changed its depreciation method to sum-of-the-years digits (SYD). The remaining useful life of the asset is estimated to be 4 years and the residual value is changed to ₱200,000. How much is the depreciation expense in 20x6?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 20x1, PRISTINE UNCORRUPTED Co. acquired an equipment for ₱4,000,000. The equipment will be
In 20x6, following a reassessment of the realization of the expected economic benefits from the equipment, PRISTINE Co. changed its depreciation method to sum-of-the-years digits (SYD). The remaining useful life of the asset is estimated to be 4 years and the residual value is changed to ₱200,000. How much is the depreciation expense in 20x6?
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