Ping Company provided the following information with respect to its building: The building was acquired January 1, 2016 at a cost of P7,800,000 with an estimated useful life of 40 years and residual value of P200,000. Yearly depreciation was computed on the straight line method. • The building was renovated on January 1, 2018 at a cost of P760,000. This was considered as improvement. Residual value did not change. • On January 1, 2021, the management decided to change the total life of the building to 30 years. What is the depreciation of the building for 2021?

Ping Company provided the following information with respect to its building: The building was acquired January 1, 2016 at a cost of P7,800,000 with an estimated useful life of 40 years and residual value of P200,000. Yearly depreciation was computed on the straight line method. • The building was renovated on January 1, 2018 at a cost of P760,000. This was considered as improvement. Residual value did not change. • On January 1, 2021, the management decided to change the total life of the building to 30 years. What is the depreciation of the building for 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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