SHOW YOUR SOLUTION IN GOOD ACCOUNTING FORM. THANK YOU What amount should be recorded as depreciation for 2021?a. 287200 b. 384000 c. 460000 d. 359000 On January 1, 2019, Brazilia Company purchased forP4,800,000 a machine with a useful life of ten years andresidual value of P200,000.The machine was depreciated by the double declining balancemethod and the carrying amount of the machine wasP3,072,000 on December 31, 2020. The entity changed to thestraight line method on January 1, 2021. The residual valuedid not change.

Depreciation represents the reduction in the value of an asset over a useful life of the asset. It…

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What amount should be recorded as depreciation for 2021? a. 287200 b. 384000 c. 460000

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

SHOW YOUR SOLUTION IN GOOD ACCOUNTING FORM. THANK YOU

What amount should be recorded as depreciation for 2021?

a. 287200

b. 384000

c. 460000

d. 359000

On January 1, 2019, Brazilia Company purchased for
P4,800,000 a machine with a useful life of ten years and
residual value of P200,000.
The machine was depreciated by the double declining balance
method and the carrying amount of the machine was
P3,072,000 on December 31, 2020. The entity changed to the
straight line method on January 1, 2021. The residual value
did not change.

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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