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PROBLEM 7: (Subsequent Recognition) On January 1, 2022, Savior Company purchased a machinery for P7,200,000. The machinery had a useful life of 10 years with no residual value and was depreciated using straight line. In 2025 a decision was made to change the depreciation method from straight line to sum of years' digits. The useful life and residual value did not change What amount should Savior Company record as depreciation for 2023? What amount should Savior Company record as depreciation for 2025?

PROBLEM 7: (Subsequent Recognition) On January 1, 2022, Savior Company purchased a machinery for P7,200,000. The machinery had a useful life of 10 years with no residual value and was depreciated using straight line. In 2025 a decision was made to change the depreciation method from straight line to sum of years' digits. The useful life and residual value did not change What amount should Savior Company record as depreciation for 2023? What amount should Savior Company record as depreciation for 2025?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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PROBLEM 7: (Subsequent Recognition) On January 1, 2022, Savior Company purchased a machinery for P7,200,000. The machinery had a useful life of 10 years with no residual value and was depreciated using straight line. In 2025 a decision was made to change the depreciation method from straight line to sum of years' digits. The useful life and residual value did not change What amount should Savior Company record as depreciation for 2023? What amount should Savior Company record as depreciation for 2025?
Transcribed Image Text:PROBLEM 7: (Subsequent Recognition) On January 1, 2022, Savior Company purchased a machinery for P7,200,000. The machinery had a useful life of 10 years with no residual value and was depreciated using straight line. In 2025 a decision was made to change the depreciation method from straight line to sum of years' digits. The useful life and residual value did not change What amount should Savior Company record as depreciation for 2023? What amount should Savior Company record as depreciation for 2025?
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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