The ending net book value of Property. Plant&Equipment (PP&E) in year 1 and year 2are $5000 and $430,000 respectively on Company A's balance sheet The company's depreciation experse inyear 2is $90,000. Whatis Company A's net apital expenditure? 0 a. $16000 Ob $90000 O $34000. O $200

The ending net book value of Property. Plant&Equipment (PP&E) in year 1 and year 2are $5000 and $430,000 respectively on Company A's balance sheet The company's depreciation experse inyear 2is $90,000. Whatis Company A's net apital expenditure? 0 a. $16000 Ob $90000 O $34000. O $200

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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Question

The ending net book value of Property. Plant&Eiquipment (PPRE) in year l and year 2 re $00ad
$430,000 respectively on Company A'sbalance sheet. The company's depreciationexpersein year Zis
$90,000. Whatis Company A's net capital expenditure?
O a $16000
Ob $9000
0. $340.00.
04 $20000

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Carrying amount of right to use asset at the end of 31st December 2022 = Initial measurement at 1 Jan 2022 - Depreciation for the year = P1,104,558 - P1,104,558/8 years x 1 year = P966,488 Hence, the carrying amount of right to use asset at the end of 2022 is = P966,488Please elaborate this solution and answer. P1,104,558 - P1,104,558 the answer is ZERO, hence if you multipty or divide it with any numbers, the answer would be zero. So, what is the solution for P966,488 answer?