At December 31, 2020, the following existed in the in the records of Mayor Company: Fixed assets P8,600,000 P3,970,000 Accumulated depreciation During the year ended September 30, 2021, fixed assets with a written down value of P370,000 was sold for P490,000. The plant had originally cost P800,000. Fixed assets purchased during the year cost P1,800,000. It is the company's policy to charge a full year's depreciation in the year of acquisition of an asset and none in the year of sale, using a rate of 10 % on the straight -line basis. What net amount (book value) should appear in the statement of financial position as of September 30, 2021 for fixed assets ?

At December 31, 2020, the following existed in the in the records of Mayor Company: Fixed assets P8,600,000 P3,970,000 Accumulated depreciation During the year ended September 30, 2021, fixed assets with a written down value of P370,000 was sold for P490,000. The plant had originally cost P800,000. Fixed assets purchased during the year cost P1,800,000. It is the company's policy to charge a full year's depreciation in the year of acquisition of an asset and none in the year of sale, using a rate of 10 % on the straight -line basis. What net amount (book value) should appear in the statement of financial position as of September 30, 2021 for fixed assets ?

Name: At December 31, 2020, the following existed in the in the records of
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Description: At December 31, 2020, the following existed in the in the records of Mayor Company:Fixed assetsP8,600,000P3,970,000Accumulated depreciationDuring the year ended September 30, 2021, fixed assets with a written downvalue of P370,000 was sold for P490,

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 24CE

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