On Jan. 1, 2020, the construction of a high-tech condominium building was completed for a total cost of P20,000,000. The entity deemed that it was appropriate to use the sum-of-years digit method to depreciate the asset over 20 years to a salvage value of P2,000,000. On Jan. 1, 2023, new estimates indicate that the total useful of the building is 23 years. What would the carrying value for the asset be for the year ending Dec. 31, 2023?
On Jan. 1, 2020, the construction of a high-tech condominium building was completed for a total cost of P20,000,000. The entity deemed that it was appropriate to use the sum-of-years digit method to depreciate the asset over 20 years to a salvage value of P2,000,000. On Jan. 1, 2023, new estimates indicate that the total useful of the building is 23 years. What would the carrying value for the asset be for the year ending Dec. 31, 2023?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On Jan. 1, 2020, the construction of a high-tech condominium building was completed for a total cost of P20,000,000. The entity deemed that it was appropriate to use the sum-of-years digit method to
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