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?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...
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