Peter Boy Co. purchased machinery for P15,000,000 on Jan. 1, 2021. The machinehas a useful life of 15 years with a residual value of P1,500,000. The entity alsoestimates that the machine will be able to produce a total of 1,500,000 units of cars.For 2021, the machine produced a total of 75,000 units of cars. Using the OutputMethod, how much depreciation should be recognized?

Units of production (output) method signs an equal amount of depreciation to each unit of product…

Answered: For 2021, the machine produced a total…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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For 2021, the machine produced a total of 75,000 units of cars. Using the Output Method, how much depreciation should be recognized?