On Oct. 1, 2020, Shaw Company purchased a machine for P1,260,000 that was placed in service on Nov. 30, 2020. Shaw incurred additional costs of this machine as follows:  Shipping - P30,000 Installation - P40,000 Testing - P50,000 The estimated useful life of the machine is 5 years and is to be depreciated using the straight-line method.  What is the depreciable amount of the machine?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On Oct. 1, 2020, Shaw Company purchased a machine for P1,260,000 that was placed in service on Nov. 30, 2020. Shaw incurred additional costs of this machine as follows: 

Shipping - P30,000

Installation - P40,000

Testing - P50,000

The estimated useful life of the machine is 5 years and is to be depreciated using the straight-line method. 

What is the depreciable amount of the machine? 

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