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Please do not provide answer in image formate thank you. Mary Company acquired a machine for P320,000 on August 31, 2014. The machine has a five-year life, a P50,000 residual value and was depreciated using the straight-line method. On May 31, 2017, a test for recoverability reveals that the expected net future undiscounted cash inflows related to the continued use and eventual disposal of the machine total P150,000. The machine’s actual fair value on May 31, 2017 is P135,000 with no residual value. Assuming a loss on impairment is recognized on May 31, 2017, what is the depreciation expense for June 2017? A. 3,148 B. 4,500 C. 5,000 D. 6,352

Please do not provide answer in image formate thank you. Mary Company acquired a machine for P320,000 on August 31, 2014. The machine has a five-year life, a P50,000 residual value and was depreciated using the straight-line method. On May 31, 2017, a test for recoverability reveals that the expected net future undiscounted cash inflows related to the continued use and eventual disposal of the machine total P150,000. The machine’s actual fair value on May 31, 2017 is P135,000 with no residual value. Assuming a loss on impairment is recognized on May 31, 2017, what is the depreciation expense for June 2017? A. 3,148 B. 4,500 C. 5,000 D. 6,352

FINANCIAL ACCOUNTING
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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Please do not provide answer in image formate thank you.

Mary Company acquired a machine for P320,000 on August 31, 2014. The machine has a five-year life, a P50,000 residual value and was depreciated using the straight-line method. On May 31, 2017, a test for recoverability reveals that the expected net future undiscounted cash inflows related to the continued use and eventual disposal of the machine total P150,000. The machine’s actual fair value on May 31, 2017 is P135,000 with no residual value. Assuming a loss on impairment is recognized on May 31, 2017, what is the depreciation expense for June 2017?

A. 3,148

B. 4,500

C. 5,000

D. 6,352

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