On January 2, 2017, Cancer Company purchased transportation equipment costing P2,400,000. The new asset has an estimated useful life of 8 years with no salvage value. Cancer Company depreciates this type of asset using the straight-line method. On January 2, 2019, Cancer determined that the machine has a useful life of 6 years from the date of acquisition with no salvage value. As a result of the change in the estimated useful life of the asset, what is the carrying amount of the transportation equipment as of December 31, 2019?
On January 2, 2017, Cancer Company purchased transportation equipment costing P2,400,000. The new asset has an estimated useful life of 8 years with no salvage value. Cancer Company depreciates this type of asset using the straight-line method. On January 2, 2019, Cancer determined that the machine has a useful life of 6 years from the date of acquisition with no salvage value. As a result of the change in the estimated useful life of the asset, what is the carrying amount of the transportation equipment as of December 31, 2019?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...
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![On January 2, 2017, Cancer Company purchased transportation equipment 1
costing P2,400,000. The new asset has an estimated useful life of 8 years
with no salvage value. Cancer Company depreciates this type of asset
using the straight-line method. On January 2, 2019, Cancer determined
that the machine has a useful life of 6 years from the date of acquisition
with no salvage value. As a result of the change in the estimated useful life
of the asset, what is the carrying amount of the transportation equipment
as of December 31, 2019?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5cd33e1b-f543-4a8c-8d70-cd3c12b8d74f%2F92dae36f-ba68-413c-8945-0674d2a6f462%2F58v2rh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 2, 2017, Cancer Company purchased transportation equipment 1
costing P2,400,000. The new asset has an estimated useful life of 8 years
with no salvage value. Cancer Company depreciates this type of asset
using the straight-line method. On January 2, 2019, Cancer determined
that the machine has a useful life of 6 years from the date of acquisition
with no salvage value. As a result of the change in the estimated useful life
of the asset, what is the carrying amount of the transportation equipment
as of December 31, 2019?
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