Ty pany rchased a machine for P5,280,000 a preciated it by the straight line meth ing an estimated useful life of eight th no residual value. On January 1, 20 ax determined that the machine had eful life of six years from the date of quisition and will have a residual valu

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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8. On January 1, 2008, Flax Company
purchased a machine for P5,280,000 and
depreciated it by the straight line method
using an estimated useful life of eight years
with no residual value. On January 1, 2011,
Flax determined that the machine had a
useful life of six years from the date of
acquisition and will have a residual value of
P480,000. An accounting change was made
in 2011 to reflect these additional data. What
is the accumulated depreciation for the
machine on December 31, 2011?
O a. 2,920,000
b. 3,080,000
c. 3,200,000
d. 3,520,000
Transcribed Image Text:8. On January 1, 2008, Flax Company purchased a machine for P5,280,000 and depreciated it by the straight line method using an estimated useful life of eight years with no residual value. On January 1, 2011, Flax determined that the machine had a useful life of six years from the date of acquisition and will have a residual value of P480,000. An accounting change was made in 2011 to reflect these additional data. What is the accumulated depreciation for the machine on December 31, 2011? O a. 2,920,000 b. 3,080,000 c. 3,200,000 d. 3,520,000
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