PROBLEM 3: (CHANGE IN ACCCOUNTING ESTIMATE) Crisha Company purchased an equipment at the beginning of 2018 in the amount of P1,600,000. The company depreciates this asset over an 8-year period, with a salvage value of 10% of original cost. At the beginning of 2020, the following changes were put into effect: a. Remaining life has been extended by three years from the date of change b. The salvage value has been reduced to 6% of the asset's original cost. Compute for the December 31, 2020 carrying value of the asset and the depreciation expense for the year under each of the following independent cases: a. A change from straight-line depreciation to SYD method b. A change from SYD method to double-declining balance method

PROBLEM 3: (CHANGE IN ACCCOUNTING ESTIMATE) Crisha Company purchased an equipment at the beginning of 2018 in the amount of P1,600,000. The company depreciates this asset over an 8-year period, with a salvage value of 10% of original cost. At the beginning of 2020, the following changes were put into effect: a. Remaining life has been extended by three years from the date of change b. The salvage value has been reduced to 6% of the asset's original cost. Compute for the December 31, 2020 carrying value of the asset and the depreciation expense for the year under each of the following independent cases: a. A change from straight-line depreciation to SYD method b. A change from SYD method to double-declining balance method

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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