Items 16 and 17 are based on the following information:Nokia Company purchased pressing machinery that cost P54,000 on January 4, 2016.The entire cost was recorded as an expense. The machinery has a nine-year life anda P50,400 depreciable cost. The error was discovered on December 20, 2018.16. Ignoring income tax considerations, Nokia's statement of comprehensive incomefor the year ended December 31, 2018 should show depreciation expense in theamount ofA. P48,400.B. P32,700.C. P16,800.D. P 5,600.17. Before the correction was made, the January 1, 2018, retained earnings wasunderstated byA. P54,000.B. P48,400.C. P42,800.D. P37,200.

Depreciation cost=50400 Life =9 years Machinery cost

The entire cost was recorded as an expe a P50,400 depreciable cost. The error 16. Ignoring income tax considerations, for the year ended December 31, 2- amount of A. P48,400. B. P32,700. C. P16,800. D. P 5,600. 17. Before the correction was made, understated by A. P54,000. B. P48,400. C. P42,800. D. P37,200.

The entire cost was recorded as an expe a P50,400 depreciable cost. The error 16. Ignoring income tax considerations, for the year ended December 31, 2- amount of A. P48,400. B. P32,700. C. P16,800. D. P 5,600. 17. Before the correction was made, understated by A. P54,000. B. P48,400. C. P42,800. D. P37,200.

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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