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Phil Inc. whose fiscal year ends on Dec. 31. 2021. purchased a unit of equipment for a total cost of P5,000,000. The equipment is expected to have a 5-year useful life and a residual value of 10% of its original cost. Using the straight-line method, how much is the carrying value of equipment as of December 31, 2024? O PP00,000 O PS00,000 O P4.500.000 O PL400.000

Phil Inc. whose fiscal year ends on Dec. 31. 2021. purchased a unit of equipment for a total cost of P5,000,000. The equipment is expected to have a 5-year useful life and a residual value of 10% of its original cost. Using the straight-line method, how much is the carrying value of equipment as of December 31, 2024? O PP00,000 O PS00,000 O P4.500.000 O PL400.000

FINANCIAL ACCOUNTING
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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Phil Inc. whose fiscal year ends on Dec. 31. 2021. purchased a unit of equipment for a total cost of P5.000,000. The equipment is expected to have a 5-year useful life and a residual value of 10% of its original cost. Using the straight-line method, how much is the carrying value of equipment as of December 31, 2024? O P900,000 O PS00,000 O PMA500.000 O PLA00.000
Transcribed Image Text:Phil Inc. whose fiscal year ends on Dec. 31. 2021. purchased a unit of equipment for a total cost of P5.000,000. The equipment is expected to have a 5-year useful life and a residual value of 10% of its original cost. Using the straight-line method, how much is the carrying value of equipment as of December 31, 2024? O P900,000 O PS00,000 O PMA500.000 O PLA00.000
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