On March 20, 2021, Barnes Company purchased a machine for P2,400,000 for the purpose of leasing it to others. The machine is expected to have a 10 year life and no residual value. It will be depreciated on the straight line base computed to the nearest month. The machine was leased to Rally Company on April 1, 2021 for 4 years at a monthly rental of P36,000. Barnes Company paid P120,000 initial direct costs associated with negotiating the lease in March 2021. 1. The machinery would be reported in the financial statements on December 31, 2021 at:
On March 20, 2021, Barnes Company purchased a machine for P2,400,000 for the purpose of leasing it to others. The machine is expected to have a 10 year life and no residual value. It will be depreciated on the straight line base computed to the nearest month. The machine was leased to Rally Company on April 1, 2021 for 4 years at a monthly rental of P36,000. Barnes Company paid P120,000 initial direct costs associated with negotiating the lease in March 2021. 1. The machinery would be reported in the financial statements on December 31, 2021 at:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On March 20, 2021, Barnes Company purchased a machine for P2,400,000 for the purpose of leasing it to others. The machine is expected to have a 10 year life and no residual value. It will be
1. The machinery would be reported in the financial statements on December 31, 2021 at:
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