The following data relate to a piece of equipment owned by ABCD Company, a calendar-year company. The company's policy is to depreciate its property, plant and equipment items to the nearest month. Acquisition date-July 1, 2020 Cost-P125,000 Estimated residual value–P5,000 Estimated service life–5 years What is the depreciation expense for the equipment for the year ended December 31, 2021 under the - (1) sum-of-the years' digits method and (2) double declining balance method
The following data relate to a piece of equipment owned by ABCD Company, a calendar-year company. The company's policy is to depreciate its property, plant and equipment items to the nearest month. Acquisition date-July 1, 2020 Cost-P125,000 Estimated residual value–P5,000 Estimated service life–5 years What is the depreciation expense for the equipment for the year ended December 31, 2021 under the - (1) sum-of-the years' digits method and (2) double declining balance method
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following data relate to a piece of equipment owned by ABCD Company, a calendar-year company. The company's policy is to
Acquisition date-July 1, 2020
Cost-P125,000
Estimated residual value–P5,000
Estimated service life–5 years
What is the depreciation expense for the equipment for the year ended December 31, 2021 under the -
(1) sum-of-the years' digits method and
(2) double declining balance method
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