On September 20, 2020, Shamille Company purchased machinery for P7,600,000. Residual value was estimated to be P400,000. The machinery is depreciated over eight years using the sum of the years’ digits method. Depreciation is computed on the basis of the nearest fullest month. What amount should be recorded as depreciation for 2021? A. 1,450,000 B. 1,600,000 C. 1,550,000 D. 1,400,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On September 20, 2020, Shamille Company purchased machinery for P7,600,000. Residual value was
estimated to be P400,000. The machinery is depreciated over eight years using the sum of the years’ digits
method. Depreciation is computed on the basis of the nearest fullest month. What amount should be recorded
as depreciation for 2021?
A. 1,450,000
B. 1,600,000
C. 1,550,000
D. 1,400,000

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