On January 1, 2021, Mama Company purchased a machine for P2.750,000. The machine was depreciated using the sum of years' digits method based on a useful life of 10 years with no residual value. On January 1, 2022, the entity changed to the straight line method of depreciation. The entity can justify the change. What is the carrying amount of the machine on January 1, 2022? A 2,750,000 B 2,475,000 1,800,000 2,250,000

On January 1, 2021, Mama Company purchased a machine for P2.750,000. The machine was depreciated using the sum of years' digits method based on a useful life of 10 years with no residual value. On January 1, 2022, the entity changed to the straight line method of depreciation. The entity can justify the change. What is the carrying amount of the machine on January 1, 2022? A 2,750,000 B 2,475,000 1,800,000 2,250,000

Name: On January 1, 2021, Mama Company purchased a machine for P2,750,000.
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Description: On January 1, 2021, Mama Company purchased a machine for P2,750,000. The machine was depreciated using the sumof years' digits method based on a useful life of 10 years with no residual value.On January 1, 2022, the entity changed to the straight li

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 9MCQ: Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a...

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