On June 30, 2020, Zendaya purchased a special machinery to conduct its oil drilling operations in Davao for P5,000,000, its useful life is 10 years. The Company is required by local government to clean the area after the drilling operations. The estimated clean-up costs was P1,500,000. The relevant discount rate was 8%. How much is the provision to be recognized in the statement of financial position as of December 31, 2020? (Round off answers to the nearest whole number)
On June 30, 2020, Zendaya purchased a special machinery to conduct its oil drilling operations in Davao for P5,000,000, its useful life is 10 years. The Company is required by local government to clean the area after the drilling operations. The estimated clean-up costs was P1,500,000. The relevant discount rate was 8%. How much is the provision to be recognized in the statement of financial position as of December 31, 2020? (Round off answers to the nearest whole number)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On June 30, 2020, Zendaya purchased a special machinery to conduct its oil drilling operations in Davao for P5,000,000, its useful life is 10 years. The Company is required by local government to clean the area after the drilling operations. The estimated clean-up costs was P1,500,000. The relevant discount rate was 8%.
How much is the provision to be recognized in the
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