The S & R Company acquired equipment on January 1, 2017 at a cost of P800,000, depreciating it over 8 years with a nil residual value. On January 1, 2020 the Minch Company acquired 100% of S & R and estimated the fair value of the equipment at P460,000 with a remaining life of 5 years. This fair value was incorporated into S & R's books and the depreciation expense continued to be calculated by refeference to original cost. Under PAS 27 Consolidated and separate financial statements, what adjustments should be made to the depreciation expense for the year and the statement of financial position carrying amount in preparing the consolidated financial statements for the year ended December 31, 2021? Depreciation Expense Carrying Amount a. Increase by P8,000 Increase by P24,000 b. Increase by P8,000 Decrease by P24,000 c. Decrease by P8,000 Increase by P24,000 d. Decrease by P8,000 Decrease by P24,000
The S & R Company acquired equipment on January 1, 2017 at a cost of P800,000,
Under PAS 27 Consolidated and separate financial statements, what adjustments should be made to the depreciation expense for the year and the
Depreciation Expense Carrying Amount
a. Increase by P8,000 Increase by P24,000
b. Increase by P8,000 Decrease by P24,000
c. Decrease by P8,000 Increase by P24,000
d. Decrease by P8,000 Decrease by P24,000
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