1. At the beginning of current year, Lem Company bought machinery under a contact that required a down payment of P100,000, plus 24 monthly payments of P50,000 each, for total cash payments of P1,300,000. The cash price of the machinery was P1,100,000. The machinery has a useful life of 10 years and residual value of P50,000. The entity used straight line depreciation. What amount should be reported as depreciation for the current year? 2.On March 30, 2019, Camia Company purchased a drilling machine for P8,400,000. The estimated useful life of the machine is 10 years with no residual value. An important component of the machine is the drill housing component that will need to be replaced in five years. The P2,000,000 cost of the drill housing component is included in the P8,400,000 cost of the machine. The entity used the straight-line depreciation. The fiscal year ends on December 31. What total amount of depreciation should be recorded in 2019? 3.Norraine Company used the composite method of depreciation based on a composite rate of 25%. At the beginning of current year, the total cost of equipment was P5,000,000 with a total residual value of P600,000 and accumulated depreciation of P3,000,000. In early part of the year, the entity purchased an equipment for P2,500,000 with no residual value. At the end of current year, the entity sold an equipment with an original cost of P1,000,000 and a residual value of P200,000 for P350,000. This asset was acquired two years ago. What amount should be recorded as depreciation for the current year? What amount should be recorded as gain or loss from the sale of the asset at year-end? 4.Canada Company purchased a machine at an invoice price of P4,500,000 with terms 2/10, n/30. The entity paid the required amount for the machine beyond the discount period. The enti aid P80,000 for delivery of the machine and P310,000 for installation and testing. The machine was ready for use on January 1, 2019. It was estimated that the machine would have a useful life of 5 years and a residual value of P800,000. Engineering estimated indicated that the useful life of productive units was 200,000. Units actually produced during the first two years were 30,000 in 2019 and 48,000 in 2020. The entity decided to use the output method of depreciation. What is the accumulated depreciation of the machine on December 31, 2020? 5.On January 1, 2014, Raven Company acquired a building at cost of P5,000,000. The building has been depreciation on the basis of a 20-year life. On January 1, 2019, an appraisal of the building showed replacement cost at P8,000,000 with no change in useful life. On January 1, 2019, an appraisal of the building showed replacement cost at P8,000,000 with no change in useful life. Before income tax, what amount should be credited to revaluation surplus on January 1, 2019? What amount should be recorded as depreciation for 2019? What is the revaluation surplus that should be reported in the December 31, 2019 statement of financial position