FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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DEE Inc. purchased an equipment on March 31, 2019. The selling price of the asset is equal to its fair value at ₱1,400,000. The entity acquired the equipment by issuing 1,000 ₱1,000 8% bonds, currently quoted at 103. Provided that the entity is using the SYD method of depreciation , and the equipment’s useful life is five (5) years with a 10% residual value based on its cost, what is the carrying value of the equipment as of December 31, 2020?
A. ₱ 535,600
B. ₱ 432,600
C. ₱ 659,200
D. ₱ 370,800
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