Vilma Company has estimated that total depreciation expense for the year ended December 31, 2020 will amount to P250,000. As of the beginning of the year, the company had fixed assets amounting to P2,000,000 and acquired additional fixed assets of P1,000,000 on July 1, 2020. The estimated useful life is for 10 years. The 2020 year-end bonuses to employees will total P600,000. In Vilma’s interim income statement for the six months ended June 30, 2020, what total amount of expense relating to these two items should be reported?
Vilma Company has estimated that total depreciation expense for the year ended December 31, 2020 will amount to P250,000. As of the beginning of the year, the company had fixed assets amounting to P2,000,000 and acquired additional fixed assets of P1,000,000 on July 1, 2020. The estimated useful life is for 10 years. The 2020 year-end bonuses to employees will total P600,000. In Vilma’s interim income statement for the six months ended June 30, 2020, what total amount of expense relating to these two items should be reported?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vilma Company has estimated that total
ended December 31, 2020 will amount to P250,000. As of the beginning
of the year, the company had fixed assets amounting to P2,000,000 and
acquired additional fixed assets of P1,000,000 on July 1, 2020. The
estimated useful life is for 10 years. The 2020 year-end bonuses to
employees will total P600,000. In Vilma’s interim income statement for the
six months ended June 30, 2020, what total amount of expense relating to
these two items should be reported?
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