B. On January 1, 20X3, GG Co. purchased a new machine for P600,000. The machine had an es- timated useful life of eight years and a residual value of P150,000. GG Co. elected to depreci- ate the machine using the double-declining balance method. On January 1, 20X6, the com- pany decided to change to straight-line depreciation. Required: 1. Determine the depreciation expense for the year 20X5. 2. Determine the depreciation expense for the year 20X6. 3. Determine the accumulated depreciation on December 31, 20X6. 4. Determine the carrying amount of the machine on December 31, 20X6.
B. On January 1, 20X3, GG Co. purchased a new machine for P600,000. The machine had an es- timated useful life of eight years and a residual value of P150,000. GG Co. elected to depreci- ate the machine using the double-declining balance method. On January 1, 20X6, the com- pany decided to change to straight-line depreciation. Required: 1. Determine the depreciation expense for the year 20X5. 2. Determine the depreciation expense for the year 20X6. 3. Determine the accumulated depreciation on December 31, 20X6. 4. Determine the carrying amount of the machine on December 31, 20X6.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:B. On January 1, 20X3, GG Co. purchased a new machine for P600,000. The machine had an es-
timated useful life of eight years and a residual value of P150,000. GG Co. elected to depreci-
ate the machine using the double-declining balance method. On January 1, 20X6, the com-
pany decided to change to straight-line depreciation.
Required:
1. Determine the depreciation expense for the year 20X5.
2. Determine the depreciation expense for the year 20X6.
3. Determine the accumulated depreciation on December 31, 20X6.
4. Determine the carrying amount of the machine on December 31, 20X6.
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