16. Jamela Company used the composite method of depreciation based on a 25% composite rate. On January 1, 2022, the total cost of equipment was P5,000,000 with total residual value of P600,000 and accumulated depreciation of P3,000,000. In January 2022, the entity purchased an equipment for P2,500,000 with no residual value. On December 31, 2022, the entity sold an equipment costing P1,000,000 for P350,000. The said equipment was acquired on January 1, 2020 with residual value of P200,000. What amount of depreciation should be recognized in 2022? A. 1,625,000 B. 1,875,000 C. 1,525,000 D. 1,000,000
16. Jamela Company used the composite method of depreciation based on a 25% composite rate. On January 1, 2022, the total cost of equipment was P5,000,000 with total residual value of P600,000 and accumulated depreciation of P3,000,000. In January 2022, the entity purchased an equipment for P2,500,000 with no residual value. On December 31, 2022, the entity sold an equipment costing P1,000,000 for P350,000. The said equipment was acquired on January 1, 2020 with residual value of P200,000. What amount of depreciation should be recognized in 2022? A. 1,625,000 B. 1,875,000 C. 1,525,000 D. 1,000,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 8MC: On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was...
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