PIKACHU purchased an equipment for P540,000 on January 1, 2020. The equipment has an estimated salvage value of P60,000 and estimated useful life of 5 years. The equipment is being depreciated using the sum-of-years digit method. How much is the carrying value of the equipment on December 31, 2021?

PIKACHU purchased an equipment for P540,000 on January 1, 2020. The equipment has an estimated salvage value of P60,000 and estimated useful life of 5 years. The equipment is being depreciated using the sum-of-years digit method. How much is the carrying value of the equipment on December 31, 2021?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

How much is the carrying value of the equipment on December 31, 2021?

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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