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On January 2, 2018, Lem Corp. bought machinery under a contract that required a down payment of P10,000 plus twenty-four monthly payments of P5,000 each, for total payments of P130,000. The cash equivalent price of the machinery was P110,000. The machinery has an estimated; useful life of ten years and estimated residual value of P5,000. Lem uses straight-line depreciation. In its 2018 income statement, what amount should Lem report as depreciation for this machinery? Group of answer choices     P13,000   P11,000   P12,500   P10,500

On January 2, 2018, Lem Corp. bought machinery under a contract that required a down payment of P10,000 plus twenty-four monthly payments of P5,000 each, for total payments of P130,000. The cash equivalent price of the machinery was P110,000. The machinery has an estimated; useful life of ten years and estimated residual value of P5,000. Lem uses straight-line depreciation. In its 2018 income statement, what amount should Lem report as depreciation for this machinery? Group of answer choices     P13,000   P11,000   P12,500   P10,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On January 2, 2018, Lem Corp. bought machinery under a contract that required a down payment of P10,000 plus twenty-four monthly payments of P5,000 each, for total payments of P130,000. The cash equivalent price of the machinery was P110,000. The machinery has an estimated; useful life of ten years and estimated residual value of P5,000. Lem uses straight-line depreciation. In its 2018 income statement, what amount should Lem report as depreciation for this machinery?

Group of answer choices

 

 

P13,000

 

P11,000

 

P12,500

 

P10,500

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